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Connection charge is the upfront payment made by customers who require a new electricity supply infrastructure and/or to upgrade existing infrastructure to cater for additional power supply.
The connection charge is imposed as part of TNB's cost to build the infrastructure for electricity supply.
Type of Customers
Consumers are categorised based on the supply voltage level, as follows:
Category 1: Supply voltage of 132 kV and above
Category 2: Supply voltage from 6.6 kV and below 132 kV
Category 3: Supply voltage below 6.6 kV
Statement of Connection Charges
Connection Charges for Category 3
- Connection charge depends on the type of consumer/ metering used. The charge is as per Schedule 1.
- Applicable only for request of supply not more than 6 kilometer away from the nearest available supply (that could meet the requested load demand)
- Should the nearest available supply be unable to meet the requested load, the supply may have to be drawn from the nearest substation. In this case, the connection charge still applies as long as the distance does not exceed 6 km
- Should the distance exceed 6 km, then the consumer will only pay for the size of the cable necessary to meet the requested load in excess of 6 km based on the rates as per Schedule 2, eventhough a larger cable may be laid by TNB to meet the demand of other consumers
- For individual domestic Category 3 where extension of the mains and/or service is limited to planting of not more than 3 poles, the connection charge is as per Schedule 3
- For individual Category 3, if there is requirement for the extension of the cable network and substation involving supply voltage above 6.6 kV and below 132 kV, the connection charge is 50% of the project cost to be paid by the consumer
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Connection Charges for Category 2
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Connection Charges for Category 1
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Connection charge to be calculated from first principle as per Schedule 4
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The cost of the project attributable to the consumer depends on the nature of the supply. It will be full cost if it is fully dedicated to him or a portion of the cost if the transmission lines will form part of TNB's transmission network. The apportionment will be according to the requested Maximum Demand of the consumer and the carrying capacity of the transmission line
- An annual return to meet TNB's cost of capital which is currently fixed at 11% is required. The period of recovery is 15 years. If the return falls short of the annual return required, then a connection charge is to be levied so that the required return by TNB is achieved
- Project minimum monthly charge, guaranteed minimum monthly charge and liquidated damages for consumer are to be calculated on first principles as per Schedule 5
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Infrastructure Area Development
- Where supply is to be made available to an area (e.g industrial park) with no specific consumer identified yet, TNB and the developer will share the cost of the infrastructure on a 50-50 basis. The developer pays upfront 50% of the total project cost:
- If within 3 years of the supply being available and the consumers connected to the infrastructure have collectively paid connection charges totalling 25% of the total project cost, then up to the full amount paid by the developer will be refunded to him
- If within the the 3 year period the offtake of supply is slow and the quantum of connection charges collected is less than 25% of the total project cost, then the refund to the developer will be proportionatelyreduced
- If after 3 years, no refund will be made to the developer
- Payment of 100% of all the monies which may become due in respect of the electricity supply or where any line or electrical plant or equipment has to be provided is to be made before the commencement of the project
- The land for distribution substation (whether indoor or outdoor) is to be provided by the developer/consumer *
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Substation
- For request of load less than 100 kVA and the nearest distribution substation cannot meet the load requested for, the consumer may be required by TNB to provide the land and the substation building at the cost as per Schedule 1
- For request of load greater than 100 kVA, the consumer is required by TNB to provide land for a distribution substation (whether indoor or outdoor)
- If TNB requires any land for a Distribution Main Intake to meet the supply requested, then the land will be provided by the developer/consumer *
- If any disagreeement between the owner and TNB over the cost of land arises, then the cost of any land will be determined in the manner as stipulated in the provisions of the Electricity Supply Act 1990 and the connection charges will be assessed accordingly
* Where the substation building and the land is to be leased to TNB at a nominal cost of RM 10, the connection charge in Column C of Schedule 1 is applicable, or where the distribution substation building is to be built and the land has to be purchased by TNB at a price agreed with the owner, the connection charge in Column D of Schedule 1 is applicable
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Request for Additional or Special Features for All Categories of Consumer
- The consumer will be required to pay the full cost of the additional request e.g. special request for an additional feeder
- For any request of additional load, the consumer is to pay the difference between the connection charge for the new load and existing load
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For more details on pricing schedule, please download this document
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