Why is there 1% Additional Charge for Renewable Energy Fund on your electricity bills?
Malakoff Utilities Sdn. Bhd. (formerly known as Wirazone Sdn. Bhd.) acts as collecting agent on behalf of Sustainable Energy Development Authority (SEDA) for the Renewable Energy Fund. SEDA is an agency under the Ministry of Energy, Green Technology and Water.
The 1% charge took effect since December 2011, imposed to all consumers except for domestic customers who consume less than 300 kilowatt-hours (kWh) or equivalent to RM77.00 a month.
The 1% charge is imposed following the launch of the Feed-in-Tariff (FiT) system. The FiT system is a funding mechanism under the Renewable Energy Act (REA) 2011 and SEDA Act 2011 designed to encourage the development of renewable energy via cost-sharing among electricity consumers in Peninsular Malaysia.