This is largely because of escalating energy costs. As of 1st June 2011, TNB will have to buy natural gas at RM13.70/mmBTU*. The hike of 28% from the current price of RM10.70/mmBTU* is based on the government’s decision to review the natural gas pricing mechanism to reflect market price. The review is carried out every six months. As a result of the gas price increase, TNB’s gas bill will swell to about RM1.5 billion per year.