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Electricity Tariff Review And Imbalance Cost Pass Through (ICPT)

Electricity Tariff Review And Imbalance Cost Pass Through (ICPT)

Effective 1st January, 2014, the electricity tariff rate was increased as much as 4.99 sen/kWh in order to accommodate for the increase in fuel costs. The Government has decided that the existing tariff to remain in effect with no upward reviews for the year 2015.

In a review of fuel and other generation costs for 2014, there was a savings of RM 727 million. These savings are mainly contributed by a reduction in the use of liquefied natural gas for electricity generation, supported by the high performance of the coal power plants, as well as the downward trend of coal prices. As such, the savings will be passed through to the customer in the form of ICPT. The ICPT could result in savings of RM13.50 to RM45 monthly for domestic customers.
For further information on ICPT, please refer to the FAQs below.


What is Imbalance Cost Pass Through (ICPT)?
The Imbalance Cost Pass Through (ICPT) is a rate that will be charged in your electricity bill based on your monthly consumption. The rate is determined by the Energy Commission, with approval from the Government, to accommodate for changes in electricity generation costs. The ICPT rate is reviewed every six months.

Will all customers be affected?
The ICPT will affect all customers except Domestic customers with consumption less than 300 kWh or equivalent to RM77.00 a month. This exception is due to the unchanged Domestic Tariff rate of 21.8 sen/kWh for the first 200 kWh since 1997 and 33.4 sen/kWh for the subsequent 100 kWh since 2009. Therefore, these customers are not qualified for ICPT on the basis that they have not been affected by the recent revisions of Tariff rate.

How will this affect my bill?
Depending on the ICPT rate, whether positive or negative, it will either increase or decrease your monthly bill. The rate is multiplied against your monthly consumption and the amount will be added or subtracted from your current bill amount. For example, your monthly consumption equals to 500 kWh. This consumption is multiplied by the ICPT rate (-0.0225 RM/kWH) which equals to –RM11.25. Since the value is negative, RM 11.25 will be deducted from your bill. The ICPT charge will appear in your bill items on months where ICPT rate is applied.

What is the ICPT rate that will be passed through to customer for the year 2014?
The ICPT rate for the period of 1st March 2015 to 30th June 2015 will be -2.25 sen/kWh or a rebate of 2.25 sen/kWh.

Do all customers receive the same ICPT rate?
Yes, all commercial and eligible domestic customers will receive the same rate. However, the rate is calculated based on your monthly consumption. Therefore, the amount varies from one customer to another, and from month to month, depending on the consumption of that month. Remember, if you wish to reduce the ICPT rate, do reduce your monthly consumption. Energy conservation is good practice for the benefit of us all.

Does Malakoff Utilities follow the same ICPT rate charged by Tenaga Nasional Berhad (TNB)?
Yes. Malakoff Utilities, as a licensed utility provider approved by Energy Commission, follow by the same guidelines and tariff set by EC and as followed by TNB.

How is the ICPT rate determined?
The Energy Commission (EC) of Malaysia determines the calculation and methodology of the ICPT, subject to government approval on a biannual basis. The EC will calculate an estimate of actual cost and actual generation based on recent generation costs and compare it with the baseline costs determined in the current tariff rate.