TNB touts cheaper electricity bills for majority under new tariffs

Tenaga Nasional Berhad (TNB) is touting that the majority of households in Peninsular Malaysia will have cheaper electricity bills once the new power tariff rates take effect next month.

In an infographic published on its website, the energy provider said bills may be lower by up to RM10.80, depending on power consumption.

However, savings will only be enjoyed by those using 1,000 kWh or less - as previously assured by the Energy Commission.

Previously, the Energy Commission said those using 1,000 kWh and below will get an "energy efficiency incentive".

This is despite the base tariff increasing from 39.95 sen per kWh to 45.4 sen.

This is likely due to how the cost of generating electricity will be passed down to consumers.

ICPT method to AFA mechanism

Under the Imbalance Cost Pass-Through (ICPT) method, if fuel costs are higher than the six-month projection, then a surcharge of up to 16 sen is tacked on to the final base tariff. If fuel costs are lower, then there is a rebate instead.

Next month, however, the ICPT method is making way for an automatic fuel adjustment (AFA) mechanism, in which the cost of fuel is updated monthly.

This time, the surcharge to the base tariff is capped at three sen. Anything higher will require government approval.

However, based on the Energy Commission's remarks, the surcharge exemption is expected to be lowered to 1,000 kWh per month from 1,500 kWh.

New electricity tariffs spare households using less than 1,000kWh

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