The Federation of Malaysian Manufacturers said it is disappointed with the Government’s decision to maintain the Imbalance Cost Pass Through (ICPT) surcharge for 1H2024 at 17 sen/kwh.
The association representing the sector said it had anticipated a reduction in ICPT surcharge following the overall declining trend in global fuel prices this year and the six-month lag. In particular, there is a drop in fuel prices from the previous ICPT and the current announcement, hence even a small reduction would still be welcomed by industries.
The Unity Government it said did not consult with the industry this time around and to why the decision to maintain the surcharge. FMM said there should be more consistent engagement with the industry to address concerns and challenges faced concerning the electricity tariff rate during the period of high ICPT surcharge rate, especially for the small and medium industries (SMIs) under the medium voltage (MV) category.
In this regard, it said there should be a more robust customer profiling to review the eligibility of SMIs under MV category to enable them to qualify for a lower surcharge at 3.7 sen/kWh as industries in general including SMIs continue to operate under a challenging environment since uncertainties around economic growth and inflation outlook remain in 2024 amid concerns on the impact of subsidy rationalisation as well as the geopolitical risks.
