The government is subsidising 13.81 sen for domestic users and 8.11 sen for non-domestic users for every kilowatt-hour (kWh) of electricity consumption in Peninsular Malaysia in the second half of 2022 (2H22).
This is as the cost of fuel and other electricity generation costs in 1H22 rose to RM7 billion, equivalent to 11.81 sen/kWh, in imbalance cost pass-through (ICPT) surcharge, as revealed by the Energy Commission (EC).
This compares with two sen/kWh rebate for domestic users, and 3.7 sen/kWh surcharge for industrial and commercial users that will remain in place through 2H22. These ICPT amounts were first revealed in February to reflect the generation and fuel costs in 2H21. The surcharge and rebate are applied on the base electricity tariff of 39.45 sen/kWh.
Of the RM5.8 billion previously announced by the government to fund the electricity surcharge subsidy, the EC said RM2.3 billion goes to cover the domestic user portion.
“In addition, the government is also allocating a total of RM3.5 billion to ensure the current ICPT surcharge is maintained to all non-domestic consumers such as commercial and industrial from being charged the entire surcharge which should have been at 11.81 sen/kWh,” it said in a statement.
The EC said coal prices have reached US$265/tonne, compared with Tenaga Nasional Bhd’s benchmark price of US$79/tonne projected in the base electricity tariff.
It explained that more than 80% of the electricity generated in Malaysia uses coal and gas, and the rising prices have caused electricity generation costs to rise by 33%.
“This has a huge impact on electricity tariffs in the peninsula as 49% of the source for the generation is coal,” it said.
“Rising coal fuel prices are beyond the control of the government as they are based on global market prices. The electricity generation sector is under pressure not only in Malaysia but even around the world following the increase in such fuel costs,” it said.
As such, the EC has encouraged electricity consumers in the peninsula to take advantage of the Net Energy Metering programme, besides taking various measures towards using electricity efficiently in an effort to minimise electricity bill amounts.
Consumers can also estimate the cost of monthly electricity bills in the future by using an electricity tariff calculator which can be accessed through the portal www.myelectricitybill.my.
“They can also input price projections for coal and gas as well as foreign exchange rates to make the estimated cost of ICPT in the next tariff adjustment period,” it said.
