2% ICPT Removal Sees Electricity Bill Hike For 15% Of Users

In order to reduce the government's subsidy spending of RM266 million per year, a targeted subsidy move would be implemented beginning Jan 1, 2024.

Approximately 1.2 million households with a monthly electricity bill of RM220 (601 kWh) or more would see their bill increase by 4.2% to 6%, implying that they can soon expect to pay an additional RM12 to RM32 per month.

However, 85% of Malaysian households will be unaffected by tariff changes and would receive a RM1.9 billion subsidy. The ministry stated that it will continue to advance its targeted subsidy agenda, with the goal of imposing a surcharge on all domestic users in accordance with the ICPT mechanism.

The Energy Transition and Public Utilities Ministry announced that domestic households with monthly energy consumption of 601 kWh to 1,500 kWh would no longer be eligible for the two sen per kWh rebate under the government's Imbalance Cost Pass-Through (ICPT) mechanism, which takes effect from Jan 1 to June 30, 2024.

What does this increase in domestic electricity tariff mean for EV owners who rely on their home charging solution to power their vehicle? Technically, their monthly electricity bill would rise, but the increase would be insignificant in comparison to the savings from visiting conventional petrol stations.

With the removal of the ICPT for consumption from 601 kWh to 1,500 kWh, BYD Atto 3 users with a 60.4 kWh battery are expected to pay RM 171.43 if they were to charge their vehicle twice a week for a month. Now if they were to include their regular home electricity usage, it would for sure exceed the subsidised threshold.

Source: New Straits Times