Friday, December 9, 2022

No increase in electricity tariff for households until 2025

NewsNo increase in electricity tariff for households until 2025

The Energy Commission has announced that the government has agreed to maintain the electricity tariff rate for households in Peninsular Malaysia for the period of February 2022 to late December 2024.

It added that the decision complies with the rules and regulations under the Regulatory Implementation Guidelines.

Previously, Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the government will be conducting studies into the new electricity tariff for this year until 2024.

The Energy Commission also said the current rate has been used since the introduction of the Incentive-Based Regulation (IBR) mechanism on 1 January 2014 as a new policy in setting electricity tariffs.

In addition, the government has also approved the continued implementation of the Imbalance Cost Pass-Through (ICPT) mechanism from 1 February to 30 June 2022.

With this, domestic users in the peninsula will continue to receive a rebate of 2 sen/kWh with no surcharge throughout the period, but a surcharge of 3.7 sen/kWh will be imposed on all non-domestic users such as commercial and industrial companies.

It said the decision was made to address the additional generation costs due to the higher fuel prices used for the supply of electricity during the period of 1 July until 31 December 2021.

The government had also allocated a total of RM715 million to the Electricity Industry Fund to cover the cost of the full rebate and surcharge for all domestic consumers.

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