DOMESTIC users in Peninsular Malaysia with a monthly electricity consumption of 1,500kWh and below will not experience tariff hikes following the adjustment from July 1 to December 31 under the Imbalance Cost Pass-Through (ICPT) mechanism.

Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad said this covers 99% of domestic users in Peninsular Malaysia. 

“This means the electricity rebate of two sen/kWh given now stays,” he told a press conference in Putrajaya today.

ICPT refers to a mechanism under the Incentive-Based Regulation that allows fuel costs to be adjusted every six months based on global fuel price fluctuations.

Nik Nazmi said the government agreed to cover the electricity subsidy under the ICPT between July 1 and December 31, amounting to RM5.2 billion.

An estimated 83,000, or 1%, of domestic users will experience a hike of RM187 or 25% in their monthly electricity bills, he said.

“However, the government will still bear a subsidy of RM58 million specifically for this category,” he said. 

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 maintained. 

Nik Nazmi said a new category of non-domestic users, namely, water and sewerage operators, will enjoy a reduction in the surcharge rate from 20 cents/kWh to 3.7 cents/kWh. 

Non-domestic users, namely, medium- and high-voltage users from industries, will enjoy a surcharge reduction from 20 sen/kWh to 17 sen/kWh, or a 28% to 35% reduction per month, he said. – Bernama, June 23, 2023.