According to the Energy Commission’s announcement, household customers in Peninsular Malaysia will continue to enjoy a rebate of 2 sen / kWh from July 1 to December 31, 2022. Non-household customers will continue to pay a surcharge of 3.7 sen per kWh.
Under ICPT mechanism, the government reviews the cost of fuel every six months, and pays a rebate or surcharge to customers based on the savings or increase in costs.
The government has allocated RM2.3 billion to cover the cost of the ICPT rebate and a surcharge for household customers. Government has also allocated RM35 to maintain the ICPT surcharge for non-household customers, which is 11.81 cents per kWh.
The price of coal used in calculating the tariff is US$79 per tonne, while the price of coal per tonne in the international market has risen to US$265. More than 80% of Malaysia’s electricity is generated using coal and natural gas.
The ICPT is calculated by multiplying the customer’s electricity consumption directly by the rebate/surcharge, which is multiplied by 2 sen for household customers and 3.7 sen for non-household customers.
Under the current government rebate mechanism of 2 cents per kWh, a household customer who consumes 500kWh of electricity will be responsible for the government surcharge of RM10. 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.
