Tenaga Nasional Berhad (TNB) has recently announced a retargeting of electricity subsidies which will take effect starting next week for consumers in West Malaysia. According to TNB, the latest revision will not affect 85% of domestic customers in Peninsular Malaysia. That means the remaining customers with high electricity usage will see a potential price hike in their TNB bill.
What are the latest changes for the TNB bill?
Effective 1st January 2024, the Imbalance Cost Pass-Through (ICPT) rebate of RM0.02 per kWh will only apply to domestic users who consume up to 600kWh of electricity per month between 1st January to 30th June 2024. At the moment, until 31st December 2023, the RM0.02 per kWh rebate is applicable for domestic electricity consumption of 1,500 kWh and below.
If you’re currently consuming more than 1,500kWh of electricity per month, there are no changes as the surcharge of RM0.10 per kWh remains unchanged for the period between 1st January to 30th June 2024.
How much to pay for TNB bill starting in January 2024?
If you’re wondering how much you will have to pay for electricity with the new ICPT rebate revision, TNB has an electricity forecast calculator which provides you with a clearer view of what to expect to pay based on your usage. As mentioned earlier, domestic users can still get to enjoy the RM0.02 per kWh rebate if their monthly electricity bill is 600kWh or less. You can check your total monthly consumption from the TNB app or your recent bill.
The tiered domestic rate remains unchanged at RM0.218 per kWh for usage of 200kWh and below. This is followed by RM0.334 per kWh for 201-300kWh, RM0.516 per kWh for 301-600kWh, RM0.546 per kWh for 601-900kWh and RM0.571 per kWh for 901kWh and above.
According to TNB’s calculator, domestic users with a total consumption of 300kWh will be billed RM71.00 while consumption of 500kWh will be billed RM170.20. The amount includes both the service tax as well as the ICPT.
If your monthly consumption is exactly 600kWh, your forecasted bill is RM219.80 as it is still eligible for the 2 sen per kWh rebate. However, the moment, it tips to 601kWh, the estimated bill jumps to RM232.38 as there’s no rebate applicable. That’s an extra RM12.58 to the bill for a mere 1kWh extra of usage.
Meanwhile, a domestic user with 900kWh consumption will have to pay RM405.43 as there’s no ICPT rebate (RM18.00 extra). For a high usage of 1550kWh, a domestic user will be billed RM959.55 as it includes the 10 sen per kWh surcharge (Total RM155 surcharge for 1,550kWh usage). If you’re paying an insane amount for your monthly electricity bills, you might want to consider a home solar system to reduce your consumption from the grid.
To calculate your estimated electricity bill, you can check out TNB’s MyElectricityBill website.
What is ICPT rebate and surcharge?
In case you’re wondering, Imbalance Cost Pass-Through (ICPT) is a mechanism under the Incentive Based Regulation (IBR) framework which allows for TNB, as the utility, to reflect changes in fuel and other generation-related costs in the electricity tariff. The government reviews the ICPT every 6 months taking into consideration the cost of fuel and generation.
Essentially, the idea is if there’s a drop in global fuel prices, a rebate will be given to customers. But if there’s an increase in fuel prices, consumers will be charged a surcharge instead. You can learn more about ICPT below:
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