1. On 23 June 2023, the Government of Malaysia announced a total subsidy allocation of RM5.2 billion for the next ICPT implementation period from 1 July 2023 until 31 December 2023 to protect ~99% of TNB customers in Peninsular Malaysia from the impact of higher fuel costs which accounts for 65% of the electricity bill.
2. In electricity bill, ICPT is a mechanism that is approved by the Government and implemented since 2014 to reflect changes in the cost of electricity generation, specifically fuel costs every six (6) months. For reference, the electricity tariff schedule in Peninsular Malaysia is unchanged since 2014.
3. Concurrently, the Government of Malaysia has also decided to introduce targeted subsidy scheme for ICPT implementation period from 1 July 2023 until 31 December 2023. With the implementation of the targeted subsidy scheme:
- ~99% of residential customers under Tariff A with a total monthly consumption of 1,500 kWh and below will continue to enjoy RM0.02/kWh ICPT rebate. For residential customers under Tariff A with a total monthly consumption exceeding 1,500 kWh, ICPT surcharge rate of RM0.10/kWh will be applicable.
- ICPT surcharge rate of RM0.037/kWh for Micro, Small and Medium Enterprises (MSMEs) and Specific Agriculture customers under Tariff B, D, H, H1 & H2 remains unchanged. Water and sewerage operators will also be charged at this rate (as compared to RM0.20/kWh in the ICPT period from 1 January 2023 to 30 June 2023).
- ICPT surcharge rate for other Commercial and Industrial customers (Non-MSMEs) is reduced to RM0.17/kWh (as compared to RM0.20/kWh in the ICPT period from 1 January 2023 to 30 June 2023).
4. The ICPT rates for the period of six (6) months from 1 July 2023 to 31 December 2023 according to customer categories and tariff type are as follows:
5. Tenaga Nasional Bhd views the latest implementation of the Imbalance Cost Pass-Through (ICPT) mechanism between July 1 and Dec 31, 2023 as neutral to the group.
6. The decision was made to address the additional generation costs resulting from higher fuel prices for eletricity supply between Jan 1 and June 30, 2023.
7. The government has agreed to cover the electricity subsidy cost amounting to RM5.2 billion under the ICPT.
8. Under the new initiatives, domestic users in Peninsular Malaysia with a monthly electricity consumption of 1,500 kilowatt-hour (kWh) and below will not experience an increase in tariffs.
9. Meanwhile, domestic consumers with high electricity consumption exceeding 1,500 kWh, or equivalent to a minimum electricity bill of RM708 per month, will be charged a surcharge at a rate of 10 sen/kWh.
10. Non-domestic users from low voltage tariff categories (B and D tariffs), and specific agricultural tariffs (H, H1, and H2 tariffs) will not experience an increase with the ICPT surcharge at a rate of 3.7 sen/kWh.
11. Non-domestic users, namely medium voltage (MV) and high voltage (HV) users from industries, will enjoy a surcharge drop from 20 sen/kWh to 17 sen/kWh, or a 28 per cent to 35 per cent reduction, per month.
12. To date, the government has successfully implemented 18 cycles of ICPT since the introduction of the mechanism in 2015.
Source:
https://www.thestar.com.my/business/business-news/2023/06/23/latest-icpt-implementation-neutral-on-tnb#:~:text=KUALA%20LUMPUR%3A%20Tenaga%20Nasional%20Bhd,as%20neutral%20to%20the%20group.
https://www.mytnb.com.my/announcements/entry/implementation-of-imbalance-cost-pass-through-icpt-rates-july-december
