KUALA LUMPUR, Nov 15 - OSK Research has maintained a "buy" recommendation on Tenaga Nasional Bhd (TNB), with the discounted cashflow fair value unchanged at RM9.76. It said the recommendation was on the expectation of a general election in the next 12 months.

"We believe the government will be more amicable towards raising electricity tariff after the general election is held," OSK said in a statement today.

It said a 1 per cent rise in tariff should lead to a 7 per cent increase in TNB's net profit.

As for the rejection of the detailed Environmental Impact Assessment report for the 300-megawatt coal-fired power plant in Lahad Datu, Sabah, OSK believed TNB would seek an alternative site for the plant.

"We believe the non-governmental organisation proposals to generate sufficient power for the east coast of Sabah purely from oil derivatives and waste product are uneconomical at this point of time," it said. -Bernama