Who will pay more for electricity under the new ICPT rules?

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Domestic Consumers with High Electricity Consumption Will Face Increased Tariffs

Domestic consumers in Peninsular Malaysia who use more than 1,500 kilowatt-hour (kWh) of electricity per month will be subject to a surcharge under the latest Imbalance Cost Pass-Through (ICPT) mechanism. This change, effective from July 1 to December 31, 2023, is a result of additional generation costs attributed to higher fuel prices during the first half of 2023. The government has allocated RM5.2 billion to cover electricity subsidy costs under this ICPT implementation.
High-Consumption Domestic Users to Bear Surcharge

For domestic consumers, a surcharge of 10 sen per kWh will be applied to those whose monthly electricity consumption exceeds 1,500 kWh. This threshold is equivalent to a minimum electricity bill of RM708 per month. Consumers using 1,500 kWh or less per month will not see any increase in their electricity tariffs.
Specific Non-Domestic Users Exempt from Increases

Certain categories of non-domestic users will not experience any tariff hikes. This includes users under low voltage tariff categories, specifically tariffs B and D, as well as those under specific agricultural tariffs, namely H, H1, and H2 tariffs. These users will continue to be charged with the ICPT surcharge at a rate of 3.7 sen/kWh without any adjustment upwards.
Industrial Medium and High Voltage Users to See Reduced Surcharges

Conversely, non-domestic users classified as medium voltage (MV) and high voltage (HV) users, primarily from industrial sectors, are set to benefit from a reduction in their surcharges. Their current surcharge of 20 sen/kWh will be decreased to 17 sen/kWh. This represents a significant reduction, ranging from 28 per cent to 35 per cent per month for these industrial consumers.

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Who will pay more for electricity under the new ICPT rules?

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