In case your household electricity bill is currently costing you greater than RM220 a month, be prepared to pay more for the utility from January 1, 2024.
That’s since the Energy Transition and Public Utilities Ministry announced today that domestic consumers who devour between 601 kWh and 1,500 kWh a month of electricity will now not be eligible for the 2 sen per kwh rebate under the federal government’s Imbalance Cost Pass-Through (ICPT) mechanism for the period of Jan 1 to June 30, 2024.
Because the Latest Straits Times reports, the move is about to have an effect on some 1.2 million households whose electricity consumption is above 600 kWh, with a rise of between 4.2% and 6% expected of their monthly bill. Because of this these households can expect to pay between RM12 to RM32 more every month for his or her electricity.
It was revealed that the move, which is an element of the country’s plan for targeted subsidies, will save the federal government RM266.2 million in subsidies in the course of the period. All other categories of users’ tariffs remain unchanged, leaving 85% of electricity consumers in Peninsular Malaysia unaffected by the revision.
This implies those using lower than 600 kwh or RM231.80 (which works out to RM219.80 with the ICPT rebate, which is RM12) and below of electricity are still accorded a rebate of two sen per kWh, and the federal government will still subsidise RM1.9 billion to take care of the established order for the 85%. Because of this as of next 12 months, there will probably be three tariff tiers for domestic users, namely:
- Those using 600 kWh or less of electricity per 30 days, who enjoy an ICPT rebate of two sen per kWh.
- Those using 601 kWh to 1,500 kWh of electricity per 30 days, who get no ICPT rebate but pay no surcharge.
- Those using greater than 1,500 kWh of electricity per 30 days, who must pay a surcharge of 10 sen per kWh.
The ministry added that it should proceed to progress its targeted subsidy agenda with the view that each one domestic users must be imposed a surcharge in step with the ICPT, essentially a mechanism to review the electricity tariff every six months to have in mind fluctuating fuel pricing, which contributes to 65% of the associated fee component of the electricity tariff.
From an automotive perspective, the revision implies that households using electric vehicles (EVs) pays more to charge them at home, albeit in a unique manner than those consuming greater than 1,500 kWh. Unless you occur to make use of virtually nothing when it comes to electricity but on charging the automotive, expect a rise.
For instance, in the event you use 1,200 kWh of electricity (or around RM550 a month), the ICPT rebate works out to RM24 off your present bill, which you’ll pay for from next 12 months. Some will argue that the rise isn’t all that giant, nevertheless it is there nonetheless, the extra spend.
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This Article First Appeared At paultan.org
