2020 second-half ICPT sees non-domestic consumers receiving reduced surcharge

KUALA LUMPUR: Non-domestic consumers will see a reduced surcharge rate from two sen/kilowatt per hour to zero sen/kilowatt per hour in the second half of this year.

This was after government decided that it will continue with the implementation of Imbalance Cost Pass-Through (ICPT) mechanism from July 1 till Dec 31, said the Energy Commission.

The agency said for domestic consumers, the electricity tariff rates would see no changes and there would also be no surcharge.

“There will be no surcharge for both non domestic and domestic consumers through the period (July 1 – Dec 31). “The decision was made following the reduction in the original coal cost for the period of January until June this year,” the 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 for the period of 2018 to 2020.

Under this mechanism, it said the basic electricity tariff rate for 2018 to 2020 was 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 6 months under the ICPT mechanism, either in surcharge or rebate, depending on the fuel and other generation costs throughout that period,” it said.

Source: NST