New Electricity Tariff

New electricity tariff rates will be in place effective from 1st June 2011. The following are several quick facts about the new electricity tariff:
  • New tariff to reflect the increase in gas price (i.e. from RM10.70 per mmBTU to RM13.70 per mmBTU) whilst the coal price is still assumed at USD85 per tonne (CIF) (i.e. the price used in March 2009 tariff adjustment).
  • The existing tariff rates will also be revised upwards to partly recover for the increase in electricity cost of supply since the last base tariff review in June 2006.
  • In line with the Renewable Energy (RE) Act which was passed in April 2011, the Government will impose 1% as Feed-in-Tariff (FiT) for RE Fund, effective 1st September 2011. The fund will be utilised for promotion and development of RE projects and initiatives and will be managed by Sustainable Energy Development Authority (SEDA) under the Ministry of Energy, Green Technology and Water.

In summary, the major features of the new electricity tariff rates are as follows:-

  • Average tariff will be increased by 7.12%. The increase is contributed by:
    • Average 5.12% increase due to the 28% upward revision of natural gas price to the power sector from RM10.70/mmBTU to RM13.70/mmBTU; and
    • Average 2.0% increase to partly recover for the increase of electricity cost of supply since June 2006
  • Industrial Consumers: average increase of 8.35% (ranging between 6.2% to about 10%).
  • Commercial Consumers: average increase of 8.35% (ranging between 6.2% to about 8.35%).
  • Domestic / Residential Consumers:
    • No tariff increase for monthly consumption of up to 200 kWh (Lifeline Band). The rate has been maintained at a highly subsidised rate of 21.8 sen/kWh in the past tariff reviews since 1997.
    • Consumers using 300kWh per month and below will not experience tariff increase.
  • Hence, no tariff increase to 75% of the household consumers (4.4 million consumers) i.e.
    • No tariff increase for Lifeline Band (3.3 million consumers)
    • No tariff increase for 201-300 kWh band (1.1 million consumers)
  • Special Industrial Tariff (SIT) consumers will experience an increase of about 10%. This is in line with the Government’s effort to gradually reduce subsidies to industries. Even with this increase, SIT consumers will continue to enjoy discounted tariff rates as compared to the rates for normal Industrial consumers.
  • The 10% discount on electricity bills currently enjoyed by Government schools, Government institutions of higher learning, places of worship and welfare homes registered with the Government is maintained. The 10% discount will also be extended to educational institutions partly-funded by the Government.
  • Thermal Energy Storage (TES) consumers will enjoy higher discount for off-peak electricity consumption. In addition, Firm Standby charge for Co-generators will be reduced to encourage Green Technology, Energy Efficiency and Demand Side Management (DSM) initiatives.
  • Water treatment, water distribution and sewerage companies to be categorised under Industrial Tariff.
  • The electricity rebate by the Government for Domestic consumers with monthly bill of not more than RM20 will be maintained until December 2011.
  • The Government will also introduce a Fuel Cost Pass-Through (FCPT) mechanism for the power sector. Under the FCPT, the fuel cost will be reviewed every six (6) months and any changes (upward or downward) in the fuel cost due to the fluctuation in the fuel prices (namely gas, coal and oil) will be passed through in the end-user tariff.
Tariff A – Domestic Tariff Rates (kWh)
Domestic Consumer 1-200 kWh RM 0.218
201-300 kWh RM 0.334
301-400 kWh RM 0.400
401-500 kWh RM 0.402
501-600 kWh RM 0.416
601-700 kWh RM 0.426
701-800 kWh RM 0.437
801-900 kWh RM 0.453
901 kWh onwards RM 0.454
The minimum monthly charge is RM3.00
Tariff B – Low Voltage Commercial Tariff Rates (kWh)
Low Voltage Commercial Consumer For Overall Monthly Consumption Between 0-200 kWh/month
all kWh RM 0.393
The minimum monthly charge is RM7.20
For Overall Monthly Consumption More Than 200 kWh/month
all kWh RM 0.430
The minimum monthly charge is RM7.20
Tariff C1 – Medium Voltage General Commercial Tariff Rates (kWh)
Medium Voltage General Commercial Consumer For each kilowatt of maximum demand per month RM 25.90
For all kWh RM 0.312
The minimum monthly charge is RM600.00
Tariff C2 – Medium Voltage Peak/Off-Peak Commercial Tariff Rates (kWh)
Medium Voltage Peak/Off-Peak Commercial Consumer For each kilowatt of maximum demand per month during the peak period RM 38.60
For all kWh during the peak period RM 0.312
For all kWh during the off-peak period RM 0.192
The minimum monthly charge is RM600.00

For Industrial, Mining, Street Lighting, Specific Agriculture, Top Up and Standby Tariff rate please refer to TNB website.

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