The government has announced that it will be maintaining the base electricity tariff at the current 39.45 sen/kilowatt hour (kWh) for all electricity users in Peninsular Malaysia, starting from 1 February 2022 to 31 December 2024. This follows recent predictions that a new tariff may be implemented come 1 February 2022.

Aside from that, the Energy Commission (EC) also said that residential users in the peninsula will continue to receive a rebate of 2 sen/kWj, with no surcharge imposed from 1 February to 30 June 2022. This 2-sen rebate was initially announced back in December 2020 for the period of January to June 2021 for both domestic and non-domestic users, and was later extended to 31 December 2021.

A total allocation of RM715 million from Kumpulan Wang Industri Elektrik fund (KWIE) will be provided to cover the full cost of the rebate and the absorption of surcharge for all domestic users.

Meanwhile, non-domestic users – including commercial and industrial consumers – will no longer be able to enjoy the 2-sen rebate that previously included them, and will also see the implementation of a 3.7 sen/kWh surcharge between February to June 2022. According to the EC, this surcharge – which is to be carried out via the Imbalance Cost Pass-Through (ICPT) mechanism – is imposed due to the sharp increase in fuel costs from between July to December 2021, amounting to RM1.67 billion.

“The sharp rise in coal prices in the market resulted in power generation costs rising by 45%, and caused a big impact on electricity tariff in the peninsula as coal makes up 59% of power generation fuel source. The rise in coal prices is out of the government’s control as it is based on global prices,” the EC explained.

To clarify, the ICPT is a mechanism that allows Tenaga Nasional Berhad (TNB) to review the electricity tariff every six months, so that it reflects the changes in fuel and other generation-related costs. Currently, the ICPT mechanism has been approved for continued implementation until 30 June this year.

Finally, TNB reassured customers that the implementation of the ICPT mechanism is “neutral on TNB” and will not have any effect on its business operations and financial position.

(Sources: New Straits Times, The Edge Markets)

• TAGS:
• Electricity Bills
• Electricity Rebates
• Electricity Tariff
• Energy Commission
• Tenaga Nasional Berhad
• TNB
• TNB Bills
• TNB Imbalance Cost Pass Through (ICPT)
• TNB Incentive Based Regulation (IBR)