The Federation of Malaysian Manufacturers (FMM) has called for more dialogue and consultation between the government and stakeholders regarding the adjustments to electricity tariffs. FMM President Tan Sri Soh Thian Lai expressed disappointment with the government’s decision to maintain the Imbalance Cost Pass Through (ICPT) surcharge at 17 sen/kwh for the first half of 2024. Soh had anticipated a reduction in the ICPT surcharge due to the overall declining trend in global fuel prices this year.
He further mentioned that additional details should be provided on the decision to maintain the surcharge at the current rate, as the industry was not consulted prior to the announcement. Soh stressed the importance of consistent engagement with industry players to address concerns and challenges faced concerning the electricity tariff rate during the period of high ICPT surcharge rate, especially for small and medium industries (SMIs) under the medium voltage (MV) category.
Further, he suggested a more robust customer profiling to review the eligibility of SMIs under the MV category to qualify for a lower surcharge at 3.7sen/kWh. He pointed out that SMIs and industries in general continue to operate in a challenging environment due to uncertainties around economic growth, inflation outlook, subsidy rationalization, and geopolitical risks.
Additionally, the Energy Commission announced that the government has agreed to revise electricity tariffs under the ICPT mechanism, entailing targeted subsidies for users in Peninsular Malaysia, except for the Kulim Hi-Tech Park in Kedah. Domestic users using 600 kWh and below will receive a 2 sen rebate per kWh, while those using between 600 kWh and 1,500 kWh will not be subjected to a surcharge.
Non-domestic users in the commercial and low voltage industrial categories, as well as specific agriculture, water, and sewerage categories, will remain subject to a surcharge of 3.70sen/kWh. For all other non-domestic users, the surcharge will remain at 17 sen/kWh.
For domestic users using 1,500 kWh and more, the surcharge will also remain at 10 sen per kWh. For example, for 1,500 kWh, the electricity bill will amount to RM738.20.
