TNB has just announced that they are revamping the monthly electrical tariff for users in Malaysia. Following the government’s decision on the Imbalance Cost Pass-Through (ICPT), the electrical supplier has decided that the power subsidy table will be rebalanced. This is to retarget the electric subsidy for Malaysians.
If your electric bills is more than RM 220 a month, you will see a hike in your next electric bill, beginning from 1 January 2024. The Energy Transition and Public Utilities Ministry announced today that domestic consumers who consume between 601 kWh and 1,500 kWh a month of electricity will no longer be eligible for the two sen per kwh rebate under the government’s Imbalance Cost Pass-Through (ICPT) mechanism for the period of Jan 1 to June 30, 2024.
The move is set to impact on 1.2 million households whose electricity consumption is above 600 kWh. They will see an increase of between 4.2% and 6% expected in their monthly bill. So this means that these households can expect to pay between RM12 to RM32 more each month for their electricity.
This reduction of subsidy is part of the government’s plan to save money, and this move will save RM266.2 million in subsidies during the period.
In a nutshell, there will be three different electrical tariffs in Malaysia starting from 1 January 2024:
- ICPT rebate of 2 sen for <600kWh of usage
- No ICPT rebate for 601 – 1500 kWh of usage, but no extra surcharge
- Surcharge of 10sen/kWh for >1500kWh of usage
Example bill calculations:
While it may not look like it, the tariff changes will definitely impact EV users as after enjoying a subsidised rate for quite some time, they will now will have to pay full price for charging their cars. While the added amount to the monthly may be small, the effect will snowball and the savings will ot be moot for those charging at home.
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