The Government will be implementing surcharge for electricity usage in Peninsular under the Imbalance Cost Past Through which basically means supporting power producer like TNB to manage production cost from sources like coal or fuel in order to maintain a stable supply.
The Energy Commission who is in charge of ensuring energy operators do not over charge customers and at the same continue to be sustainable. So for the next 6 months the ICPT which has been contentious because it also means the government is subsidising electricity in the country will be implemented from January 1 to June 30.
Under the announcement the EC has decided to continue offering a 2 sen rebate for households that consume 600kwj of electricity per month. For households that consume anywhere between 600kwj to 1500kwj the commission will not offer any surcharge, however for households consuming more than 1500kwj the EC will impose a 10 sen surcharge which was what being imposed in 2023 as well.
As for non domestic which has been split into two categories, commercial users in the low voltage industrial sector, public utility like water and sewerage and agriculture the government will continue with the 3.7 sen/kwj surcharge while all other non domestic sector like sme’s, msmes, offices, will continue with the 17sen/kwj surcharge.
The non-domestic sector has called for a reduction in the increase of 17sen, which some SME associations viewed as excessive. The implementation is similar to the 2023 model.
The Energy Commission based on the subsidy program a total of 85 percent or 7.0 million domestic users in the Peninsular will not be affected by the electricity tariff adjustment for the period from January 1 to 30 June 2024. Accordingly, a total of 99 percent or 8.2 million domestic users will still receive subsidies from the Government.
While for all non domestic users, the surcharge applied remains the same. Based on the retargeting of this subsidy, the Government said it has allocated a total of RM1.9 billion in subsidies to the categories of users involved to minimise the impact of ICPT surcharge throughout this implementation period.
