FOR POWER OUTAGE OR BREAKDOWN, PLEASE CALL 15454
FOR POWER OUTAGE OR BREAKDOWN,
PLEASE CALL 15454

Connected Load Charge (CLC)

Connected Load Charge is a mitigating tools to discourage consumers from over declaring their load requirement.
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CONNECTED LOAD CHARGE (CLC)

  • Connected Load Charge is a mitigating tool to discourage consumers from over declaring their load requirement. Over declaration will lead to over plant up and waste of resources and increase in reserve margin. Without CLC, other consumers will have to also pay for the unnecessary higher costs of electricity due to wastage and this is unfair to those who do properly declare.
  • Other utilities who do not have CLC penalty, recover their demand component or fix cost via imposing contract capacity charge through their tariff rate based on consumer declaration.
  • The government has recently approved an enhanced terms for CLC. In line with this, TNB will be implementing the enhanced terms starting 15th January 2021.

Consumer Category

  1. New Consumer:
    All new medium voltage and high voltage consumers (consumers with supply voltage at 1kV and above) are subjected to CLC for a period of 6 years from the date the supply is connected.
     
  2. Upgrading Consumer:
    Any supply and/or load and/or voltage upgrade, the consumer will be levied new CLC for a period of 5 years from the date the additional supply is connected.
     
  3. Change of Tenancy (COT) consumer:
    Any medium voltage and high voltage consumers who apply for open account (Change of Tenancy) to the existing premise will be subject to CLC based on scenarios.

CLC calculation

New consumer

  • Consumer is subjected to CLC for a period of 6 years from the date the supply is connected.
  • Consumer who take supply after 15 January 2021 has to declare the Maximum Demand (MD) in phases (for CLC calculation purposes) for year one (1) until year four (4) upon supply application. Total MD declared will be used to calculate CLC for year five (5) and six (6). Kindly complete this CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and attach it during the Move In process.
  • CLC is applicable when the actual MD recorded on any month is less than 85% of the MD declared in phases during year 1 until year 4 and less than 75% of the total MD declared for year 5 and year 6.
  • The method in determining Reference Maximum Demand* for calculating CLC are as follows:

    YEAR REFERENCE MAXIMUM DEMAND*
    1 85% x [Declared MD Year 1 or Highest Recorded MD, whichever is higher]
    2 85% x [Declared MD Year 2 or Highest Recorded MD, whichever is higher]
    3 85% x [Declared MD Year 3 or Highest Recorded MD, whichever is higher]
    4 85% x [Declared MD Year 4 or Highest Recorded MD, whichever is higher]
    5 75% x [Total Declared MD or Highest Recorded MD, whichever is higher]
    6 75% x [Total Declared MD or Highest Recorded MD, whichever is higher]

    Schedule 3(a) – CLC table for New Consumer

  • Note:
    * CLC is applicable when MD recorded < Reference MD
    ** If MD recorded is higher than MD declared (Highest Recorded MD, RMD), the RMD will replace the MD declared for the year. Reference MD will be calculate using the new MD declared

Upgrading consumer

  • Consumer is subjected to the new CLC for a period of 5 years from the date the additional supply is connected.
  • Consumer has to declare the MD in phases for year 1 until year 3 (for CLC calculation purposes) once during supply application. Total MD declared will be used to calculate CLC for year 4 and year 5. Kindly complete this CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and submit it during supply application.
  • Declaration of MD for year 1 to year 3 must not be lower than 75% from the previous declared MD (existing MD) 
  • CLC is applicable when the actual MD recorded on any month is less than 85% of the MD declared in phases during year 1 until year 3 and less than 75% of the total MD declared for year 4 and year 5.
  • The method in determining Reference Maximum Demand* for calculating CLC are as follows:

    YEAR REFERENCE MAXIMUM DEMAND*
    1 85% x [Declared MD Year 1 or Highest Recorded MD, whichever is higher]
    2 85% x [Declared MD Year 2 or Highest Recorded MD, whichever is higher]
    3 85% x [Declared MD Year 3 or Highest Recorded MD, whichever is higher]
    4 75% x [Total Declared MD or Highest Recorded MD, whichever is higher]
    5 75% x [Total Declared MD or Highest Recorded MD, whichever is higher]

    Schedule 3(b) – CLC table for Upgrading Consumer

  • Note:
    * CLC is applicable when MD recorded < Reference MD
    ** If MD recorded is higher than MD declared (Highest Recorded MD, RMD), the RMD will replace the MD declared for the year. Reference MD will be calculate using the new MD declared

COT consumer

There are some scenarios in determining the period of CLC;

  • Should the previous consumer has end the CLC period;
    • If the new MD declared by a new consumer is equal or lower than previous MD, no CLC will be imposed to the new consumer,
    • If the new MD declared by a new consumer is higher than previous MD, the consumer will be subjected to the new CLC for a period of 6 years from the date of COT. (refer New Consumer terms)
       
  • Should the previous consumer still subject to CLC;
    • If the new MD declared by a new consumer is equal to previous MD, consumer may choose one of the following options:
      • Continue existing CLC table; or
      • Re-declare the MD once by phases for the remaining years (except for the remaining 2 years) during supply application. Subject to eligibility and based on the new CLC policy.
    • If the new MD declared by a new consumer is lower (within same voltage level) or greater than previous MD, the consumer will be subjected to the new CLC for a period of 6 years from the date of COT. (refer New Consumer terms)
       
  • Kindly complete this CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and attach it during the Move In process.

Existing consumer

  • Existing consumers who take supply before 15 January 2021 and still within CLC period are allowed to re-declare MD by phases once in year 1-4 (applicable for consumers who are subjected to CLC for 6 years) or Year 1-3 (applicable for consumer who are subjected to CLC for 5 years) based on the new CLC policy.
  • New MD declared will be effective from the next billing cycle and no adjustment will be made to the previous CLC penalties.
  • Existing consumers who are still within the CLC period requesting to redeclare MD in Year 5-6 (applicable to consumer who are subjected to CLC for 6 years) or  Year 4-5 (applicable to consumers who are subjected to CLC for 5 years) are subjected to additional charge as per existing policy.
  • To proceed with the application, kindly download and submit a completed CLC Form 2 to [email protected].

Charges

  • CLC rate of RM8.50/kW will be charged for every kW shortfall between the Actual Maximum Demand recorded compared to the Reference Maximum Demand (RMD) and subjected to prevailing changes from time to time
  • CLC is calculated on monthly basis and displayed in the consumer’s bill (if any).
  • Example of CLC calculation:
    • New Consumer:

      Total MD declared for the development: 10,000 kW
      MD declared in phase for CLC calculation:
      Year 1  : 2,000 kW
      Year 2 : 5,000 kW
      Year 3 : 7,000 kW
      Year 4 : 8,000 kW
       
  • YEAR MAXIMUM DEMAND DECLARED FOR CLC REFERENCE MAXIMUM DEMAND (RMD) ACTUAL MAXIMUM DEMAND
    (AMD)**
    CLC PENALTY
    (RM)
    1 2,000kW 85% x 2,000kW
    = 1,700kW
    1,200kW RM8.50 x (1,700kW – 1,200kW)
    = RM4,250
    2 5,000kW 85% x 5,000kW
    = 4,250kW
    4,800kW No penalty. AMD > RMD
    3 7,000kW 85% x 7,000kW
    = 5,950kW
    5,250kW RM8.50 x (5,950kW - 5,250kW)
    = RM5,950
    4 8,000kW 85% x 8,000kW
    = 6,800kW
    7,000kW No penalty. AMD > RMD
    5 10,000kW 75% x 10,000kW
    = 7,500kW
    8,000kW No penalty. AMD > RMD
    6 10,000kW 75% x 10,000kW
    = 7,500kW
    8,200kW No penalty. AMD > RMD

    **Assumption: Actual Maximum Demand (MD) recorded in 1 month within a CLC year
    • Upgrading Consumer:

      Existing MD : 10,000 kW
      Additional MD : 5,000kW
      Total MD declared for the whole development : 15,000kW
      MD declared in phase for CLC calculation:
      Year 1 : 7,500 kW (minimum - declared MD Y1,2 and 3 must not be lower than 75% from previous declared amount)
      Year 2 : 11,000 kW
      Year 3 : 13,000 kW
       
  • YEAR MAXIMUM DEMAND DECLARED FOR CLC REFERENCE MAXIMUM DEMAND (RMD) ACTUAL MAXIMUM DEMAND
    (AMD)**
    CLC PENALTY
    (RM)
    1 7,500kW 85% x 7,500kW
    = 6,375kW
    8,600kW No penalty. AMD > RMD
    2 11,000kW 85% x 11,000kW
    = 9,350kW
    9,500kW No penalty. AMD > RMD
    3 13,000kW 85% x 13,000kW
    = 11,050kW
    10,700kW RM8.50 x (11,050kW - 10,700kW)
    = RM2,975
    4 15,000kW 75% x 15,000kW
    = 11,250kW
    11,200kW RM8.50 x (11,250kW - 11,200kW)
    = RM425
    5 15,000kW 75% x 15,000kW
    = 11,250kW
    12,000kW No penalty. AMD > RMD

    **Assumption: Actual Maximum Demand (MD) recorded in 1 month within a CLC year.

Few activities could be carried out by customers that assist in reducing MD charges such as:

  • Practicing demand side management such as peak shift i.e. shifting their peak operation/consumption to off peak period as MD charges is not applicable during off-peak period for customers with peak/off-peak tariff
  • Opting for any promotional scheme offered by TNB relating to MD such as Sunday Tariff Rider Scheme (STR) and Enhanced Time of Use Tariff (ETOU)
  • Starts motor/equipment in stages or during off-peak period

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Power Factor Surcharge

A Power factor surcharge is imposed when your power factor is less than 0.90 (electricity supply 132kV and above) or less than 0.85 (electricity supply below 132 kV).
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A Power factor surcharge is imposed when your power factor is less than 0.90 (electricity supply 132kV and above) or less than 0.85 (electricity supply below 132 kV).

Power factor surcharge for customers with electricity supply below 132 kV is calculated as follows:-

     
  • 1.5% surcharge of the current bill – for every 0.01 less than 0.85 power factor.
  •  
  • 3% surcharge of the current bill – for every 0.01 less than 0.75 power factor.

Example 1:-

Current bill: RM2,000

                                                           
Power Factor = 0.80
Surcharge = [(0.85 – 0.80) / 0.01] x 1.5% x RM2,000 = RM150

Example 2:-

Current bill: RM2,000

                                                           
Power Factor = 0.75
Surcharge = [(0.85 – 0.75) / 0.01] x 1.5% x RM2,000 = RM300

Example 3:-

Current bill: RM2,000

                                                           
Power Factor = 0.60
Surcharge = [((0.85 – 0.75) / 0.01) x 1.5% x RM2,000] + [((0.75 – 0.60) / 0.01) x 3% x RM2,000] = RM1200

What is Power Factor

Power Factor is an index used to compute the efficiency level of electricity usage. The index is measured from 0 to 1. A higher index shows efficient usage of electricity and vice versa. Low power factor shortens the lifespan of electrical appliances and causes power system losses to TNB. To understand power factor, we will start with the definition of some basic terms:-

                                                                                                                         
KWWorking Power (also called Actual Power, Active Power or Real Power). It is the power that powers equipment and performs useful work.
KVAR Reactive Power. It is the power which magnetic equipment such as transformers, motors and relays need to produce the magnetizing flux.
KVA Apparent Power. It is the vectorial summation of KVAR and KW.

Let’s look at a simple analogy in order to better understand these terms. Let’s say you are at a park and it is a hot day. You order a glass of a carbonated drink. The thirst-quenching portion of the drink is represented by KW. Unfortunately, along with your drink comes a little bit of foam. The foam does not quench your thirst. This foam is represented by KVAR. The total content of your glass, KVA, is this summation of KW (the carbonated drink) and KVAR (the foam).

                                       
Power Factor is the ratio of Working Power to Apparent Power. Power Factor = KW / KVA

Looking at our carbonated drink analogy, power factor is the ratio of carbonated drink (KW) to the carbonated drink plus foam (KVA). Power Factor = KW / (KW + KVAR) = Carbonated drink / (Carbonated drink + foam)

                                       
Thus, for a given KVA:- i. The more foam you have, the lower your power factor. ii. The less foam you have, the higher your power factor.

For efficient usage of electricity, power factor must approach 1.0. A Power factor that is less than 0.85 shows inefficient use of electricity.

                               
Calculation for Power Factor = KWh _ √(KWh2 + KVARh2)

Causes of Low Power Factor

In our carbonated drink analogy, low power factor resulted when the amount foam is was large. Low power factor is caused by inductive loads, which are sources of reactive power. Examples of inductive loads are:-

     
  • Transformers
  •  
  • Induction motors
  •  
  • High Intensity Discharge (HID) lighting

Inductive loads constitute a major portion of power consumed by commercial and industrial sectors.

How to Improve Your Power Factor

Customers are advised to follow these steps:-

     
  • Install capacitors (KVAR Generators)
           
    • Capacitor
    •      
    • Corrector
    •      
    • Synchronous generators
    •      
    • Synchronous motors
    •  
     
  • Minimise operations of idling or lightly loaded motors.
  •  
  • Avoid operating equipment above its rated voltage.
  •  
  • Replace standard motors as they burn out with energy efficient motors.

Benefits of Improving Power Factor

Benefit 1: Reducing KW billing demand

Low Power Factor requires high reactive power (KVAR) and apparent power (KVA), which is the power that TNB supplies. Therefore, a facility’s low power factor forces TNB to increase its generation and transmission capacity in order to handle this extra demand. By increasing the power factor, customers use less KVAR. This results in less KW, which equates to RM savings for TNB.

Benefit 2: Eliminating power factor surcharge

Utility companies all around the world charge customers an additional surcharge when their power factor is less than 0.95. In fact, some utilities are not obliged to deliver electricity to their customers at any time the customer’s power factor falls below 0.85. Thus, customer can avoid this additional surcharge by increasing power factor. In Malaysia, TNB is allowed through the Malaysian Grid Code and the Malaysian Electricity Distribution Code, to impose a surcharge to the customer if the power factor is <0.85 for customers receiving less than 132kV.

Benefit 3: Increased system capacity and reduced system losses in your electrical system

Low power factor causes power system losses in the customer’s electrical system. By improving power factor, these losses can be reduced. With the current rise in the cost of energy, increased facility efficiency is important. Moreover, with lower system losses, customers are able to add additional load in their electrical system.

Benefit 4: Increased voltage level in your electrical system, resulting in more efficient motors

As power losses increase, customer may experience a voltage drop. Excessive voltage drops can cause overheating and premature failure of motors and other inductive equipment. Therefore, by raising the power factor, customers can minimise these voltage drops along feeder cables and avoid related problems. Motors will run more efficiently, with a slight increase in capacity and starting torque.

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Electrical welding equipment

A Power electrical welding equipment surcharge is imposed for commercial and industrial with transformer-operated electric welding equipment installed commercial and industrial.
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Electrical welding equipment

In addition to the appropriate tariff rate, there will be a surcharge for transformer-operated electric welding equipment installed for low voltage consumers at RM3.00 per kVA per month, and for medium and high voltage consumers at RM2.00 per kVA per month. Motor-operated welding sets are exempted from the foregoing surcharge. ​

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Temporary supply

A consumer who applies for temporary supply shall be charged at the tariff rate appropriate to their category plus 33% surcharge on the total monthly bill.
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Temporary supply

The supply agreement for the temporary load shall be time restricted and the consumer shall be subjected to a Connection Charge of 100% of the total cost of installing and subsequent dismantling of TNB’s infrastructure to provide this temporary supply. ​

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