GOOD NEWS FOR NON-DOMESTIC USERS
Govt to continue mechanism in tariff setting, adjusting framework until Dec 31
NON-DOMESTIC consumers will see a reduced electricity sur- charge rate from two sen per kilo- watt per hour to zero sen per kilo- watt per hour in the second-half of this year.
This was after the government decided that it would continue with the implementation of the Imbalance Cost PassThrough (ICPT) mechanism from July 1 until Dec 31, said the Energy Commission.
The agency said for domestic consumers, the electricity tariff would see no changes and that there would also be no surcharge.
“There will be no surcharge for both non-domestic and domestic consumers throughout the period (July 1 to Dec 31).
“The decision was made following the reduction in the original coal cost for the period of January until June this year,” the Energy Commission said in a statement.
It said the ICPT mechanism was a part of the Incentive-Based Regulation (IBR) framework for setting and adjusting electricity tariffs in Peninsular Malaysia for the period of 2018 to 2020.
Under this mechanism, it said the basic electricity tariff for 2018 to 2020 would be determined by setting the price of coal and gas fuel benchmarks during that period.
“Any difference in the actual cost with the gas fuel benchmark in the basic tariff setting will be adjusted every six months under the ICPT mechanism, either in surcharge or rebate, depending on the fuel and other generation costs throughout that period,” it said.