Tenaga Nasional Bhd views the latest implementation of the Imbalance Cost Pass-Through (ICPT) mechanism between July 1 and Dec 31, 2023 as neutral to the group.
The execution will also not have any effect on its business operations and financial position, the utility giant said in a filing to Bursa Malaysia today.
The decision was made to address the additional generation costs resulting from higher fuel prices for eletricity supply between Jan 1 and June 30, 2023.
Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad said today that the government has agreed to cover the electricity subsidy cost amounting to RM5.2 billion under the ICPT.
Under the new initiatives, domestic users in Peninsular Malaysia with a monthly electricity consumption of 1,500 kilowatt-hour (kWh) and below will not experience an increase in tariffs.
Meanwhile, domestic consumers with high electricity consumption exceeding 1,500 kWh, or equivalent to a minimum electricity bill of RM708 per month, will be charged a surcharge at a rate of 10 sen/kWh.
Nik Nazmi said non-domestic users from low voltage tariff categories (B and D tariffs), and specific agricultural tariffs (H, H1, and H2 tariffs) will not experience an increase with the ICPT surcharge at a rate of 3.7 sen/kWh.
Non-domestic users, namely medium voltage (MV) and high voltage (HV) users from industries, will enjoy a surcharge drop from 20 sen/kWh to 17 sen/kWh, or a 28 per cent to 35 per cent reduction, per month.
To date, the government has successfully implemented 18 cycles of ICPT since the introduction of the mechanism in 2015