Measuring Performance Using Balance Scorecard and SWOT Analysis: A Case Study of Multinational Electricity Company in Malaysia

Abstract

Tenaga Nasional Berhad (TNB) is a Malaysian company that is the main supplier of electricity to 10.6 million consumers in the country. In general, TNB electricity tariff is classified differently based on consumer business activity and the supply voltage level supplied. It can either be low, medium or high voltage depending on whether it is for domestic use, commercial, industrial, mining, street lighting or specific agriculture. Not only is electricity the main means of powering convenient modern living, but it is also the lifeblood of modern industries critical for a thriving business environment in the country. However, due to increasingly high generation costs due to global fuel prices incurred, TNB maintains that they have to consider the decision to increase the electricity tariff. The public and the government understandably are concerned because it will affect many parties, especially the increase in the cost of living of their consumers. To understand TNB's justification for raising its electricity tariff bill, a study needs to be conducted. Therefore, the main objective of the study is to evaluate the financial and non-financial performance of TNB. The TNB's annual reports over the past five years (2018 to 2022) have been analysed using the Balanced Scorecard concept. The results of the study show that TNB's income is increasing every year. However, the amount of debt incurred by TNB has also increased. This was followed by a 45% increase in operating expenses. In those five years, the number of users has increased by almost 10%. The conclusion of the study was presented using a SWOT analysis to provide a more meaningful analysis of TNB's performance. In summary, the company's financial and non-financial position is in good condition, as long as the government continues to provide subsidies to cover part of consumers’ electricity bills.