Electricity bills will show the total amount of subsidies paid by the government!
In order to inform people about the subsidies provided by the government, electricity bills will show directly the total amount of the government’s subsidies. This measure will be effective from August 2022.
It is understood that the cost of electricity generation from January to June this year has reached RM7 billion, of which RM5.8 billion is borne by the government and RM1.2 billion is allocated to large enterprises.
To know how much the government has subsidized your electricity bill, you can check the next month’s bill. The bill will also show you the amount you would have paid if not for the government subsidy.
Under the cost of generation pass-through (ICPT) mechanism, the government reviews the cost of fuel and the cost of generation every six months and pays the customer a rebate or surcharge based on the savings or increase in cost.
The ICPT is calculated by multiplying the rebate/surcharge directly by the customer’s electricity consumption, which is 2 cents for domestic customers and 3.7 cents for non-domestic customers.
Under the current government rebate mechanism of 2 sen per kWh, the government will pay a surcharge of RM10 for a household customer who consumes 500kWh of electricity. This household customer would have to pay RM180.20 for electricity, but after the government covers the RM10 surcharge, the customer will only have to pay RM170.20 for electricity.
As for commercial customers, commercial customers will have to pay a surcharge of 3.7 cents per kilowatt hour. Based on 500kWh of electricity consumption, this commercial customer will pay RM239.70 for electricity and RM258.20 for electricity after the addition of RM18.50 surcharge.
