Who is paying the ICPT surcharge if domestic consumers are exempted?

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The Industry and Commercial Sector Bears the Imbalance Cost Pass-Through Surcharge

Domestic consumers are exempted from the imbalance cost pass-through (ICPT) surcharge, with nine million household accounts receiving this benefit. This exemption results in an additional cost of RM5.8 billion for the government. A portion of these costs, RM1.2 billion, is being absorbed by industries.
Industries Are Directed to Cover Subsidies for Domestic Consumers

Large industries, which are reportedly generating substantial monthly profits, have been instructed to cover the subsidies provided to the general populace. This measure is part of the government's strategy to manage electricity tariffs. The Incentive Based Regulation (IBR) and ICPT mechanisms are the established frameworks used by the government in determining electricity rates.
Significant Costs Incurred for Electricity Generation

The period from January to June of the current year saw electricity generation costs amounting to RM7 billion. These substantial expenses are attributed to the procurement of essential resources such as coal and gas. Normally, these increased costs would be passed on to consumers.
Industry and Commercial Sectors Face a Reduced Surcharge Rate

Under the current policy, the industry and commercial sectors are required to pay a surcharge of 3.7 sen per kilowatt hour (kWh). This rate is significantly lower than the 11.81 sen per kWh they would otherwise be obligated to pay. The subsidy amount provided to consumers will be reflected in their electricity bills in the upcoming month.

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Who is paying the ICPT surcharge if domestic consumers are exempted?

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