No surcharge in electricity bill from July to Dec
Electricity users won't have to pay a surcharge for their electricity from July until December.
Tenaga Nasional Berhad (TNB) confirmed that the surcharge in the Imbalance Cost Pass-Through (ICPT) mechanism was lowered from two sen/kWh to 0 sen/kWh.
Electricity users won't have to pay a surcharge for their electricity from July until December.
Tenaga Nasional Berhad (TNB) confirmed that the surcharge in the Imbalance Cost Pass-Through (ICPT) mechanism was lowered from two sen/kWh to 0 sen/kWh.
The reduction will largely benefit commercial users as the ICPT surcharge, which is determined every six months, was already at zero for domestic consumers in the previous six-month period.
Domestic users with a bill of RM77 are also exempted from the ICPT mechanism.
The ICPT, introduced in 2014, is a mechanism that allows energy companies to pass the cost to consumers in the even there is an increase in the cost to produce electricity.
Among the factors considered in the calculation is the cost of raw materials to produce energy in the previous six months.
TNB said the reduction in the surcharge for the next six month is due to the fall in coal and natural gas average prices from January to June.
It said the average price for coal for the period was at US$69.5/MT compared to the benchmark of US$75/MT while the average price for natural gas was at RM26.6/mmBTU compared to the benchmark of RM27.2/mmBTU.
"As a utility company, TNB is overseen by the Energy Commission and operates in a regulated environment, including the ICPT mechanism.
"As determined by the Energy Commission through the ICPT, TNB will display the change in fuel (coal and natural gas) and other costs in the electricity tariff every six months," said TNB president and executive director Amir Hamzah Azizan (above) in a statement.
Amir explained that due to the time lag in the system, any decline in cost of production now will only be felt down the road.
"TNB, as a utility company, is committed to ensuring our customers receive stable electricity supply and a service that is up to international standards," he said.
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