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ICPT - English

Key Highlights

1. How much is the ICPT rebate to be passed through to customers for the period of 1 July 2022 to 31 December 2022?

Imbalance Cost Pass-Through (ICPT) implementation for the period of 1 July 2022 – 31 December 2022 are as follows:

  • The Government has decided to maintain the current ICPT rate for all customers in Peninsular Malaysia for the period of 1 July 2022 – 31 December 2022.
  • For the period 1 January 2022 - 30 June 2022, there was an additional fuel and other generation costs amounting to RM7.0 billion that translates to an ICPT surcharge of 11.81 sen/kWh. This is due to the increase in global fuel price - coal that soar to USD265/MT as compared to USD79/MT set in the base tariff for Regulatory Period 3. Among the reasons for the increase in coal price was due to the ongoing global crisis and world coal supply constraints.
  • Due to the additional fuel and generation costs for period 1 January 2022 – 30 June 2022, Government has allocated RM2.3 billion to cover the costs. Apart from that, Government has also allocated a total of RM3.5 billion to ensure that the current ICPT surcharge is maintained for all non - domestic customers such as commercial and industrial rather than being charged the full surcharge at 11.81 sen/kWh. This brings the total amount of rebates and ICPT surcharge costs borne by the Government to RM5.8 billion.

The ICPT implementation for period 1 July 2022 until 31 December 2022 is as follows:

Domestic customers Non-Domestic customers

The ICPT rate for Domestic customers is as follows:

a. The ICPT rebate of 2.00 sen/kWh from the last ICPT implementation period is maintained for all Domestic customers.


The ICPT surcharge for Non-Domestic customers is as follows:

a.The ICPT surcharge of 3.70 sen/kWh from the last ICPT implementation period is maintained for all Commercial and Industrial customers

  • Domestic customers refer to Residential customers
  • Non-Domestic customers refer to Commercial, Industrial customers and others

2. Who will be affected by this ICPT surcharge?

For the period of 1 July – 31 December 2022, all Domestic customers will maintain the current rebate of 2.00 sen/kWh and hence, will experience no change in their monthly electricity bill.

However, the ICPT surcharge of 3.70 sen/kWh is applicable to all Non-Domestic customers from period 1 February – 30 June 2022.

3. What about customers that consume below than 300kWh?

Domestic customers with monthly consumption of 300 kWh (RM 77.00) and below were not affected in the previous tariff reviews i.e:

i. Tariff rate for Lifeline Band customers (0-200 kWh) has been maintained at 21.80 sen/kWh since 1997; and
ii. Tariff rate for 201-300 kWh band has been maintained at 33.40 sen/kWh since 2009.

In addition, Government allocated another RM 40.00 electricity subsidies specifically to those categorised under hardcore poverty Domestic customers who are registered with the E-Kasih program.

However, the implementation of ICPT for the consumers with monthly consumption up to 300 kWh is subject to the Government's decision. Considering the impact of the COVID-19 pandemic on the nation's economy, the Government has previously decided that any ICPT savings be released to Domestic consumers with monthly consumption up to 300 kWh. Similarly, the Government will make due consideration in the case of an ICPT surcharge to reduce the impact on Domestic consumers in the 300 kWh band.

What is Imbalance Cost Pass-Through (ICPT)?

ICPT is a mechanism under the Incentive Based Regulation (IBR) framework which allows for TNB, as the utility, to reflect changes in fuel and other generation-related costs in the electricity tariff. This is because, these costs are set based on benchmarked prices in the base tariff. The implementation of ICPT, which occurs every 6 months, would reflect the actual costs in tariff in from of rebate or surcharge.

What are the major factors contributing to the surcharge given in ICPT for period 1 February – 30 June 2022?

This ICPT surcharge is mainly due to the significant increase in average coal price. Given that 59% of Peninsular Malaysia’s generation source is coal, the rise in coal price has increased the overall generation cost significantly for the period of January to June 2022.

Under the ICPT mechanism, fuel and generation costs will be reviewed every six (6) months and passed through to the customers in the form of rebate or surcharge depending on cost savings or cost increased within that stipulated period. More than 80% of the electricity generated in Malaysia uses coal and gas, where the cost of coal had increased significantly that caused an increased in the cost to generate electricity by 33%.

Who is responsible for ICPT calculation methodology?

The calculation and methodology of ICPT is determined by Suruhanjaya Tenaga, subject to Government approval on a 6-monthly basis.

What is Kumpulan Wang Industri Elektrik (KWIE)?

Kumpulan Wang Industri Elektrik (KWIE) is a fund administered by Suruhanjaya Tenaga (Energy Commission). It was created and enforced on 1st January 2016 with the objective to manage and cushion the impact of electricity tariff to the customers.

What are the components of Imbalance Cost Pass-Through (ICPT)?

There are two key components in ICPT:

  • Fuel Cost Pass-Through (FCPT): FCPT component captures any variation in fuel cost (specific to piped gas, liquefied natural gas (LNG) and coal) due to changes in the fuel price, fuel quantity, generation mix, exchange rate etc.
  • Generation Specific Cost Pass-Through (GSCPT): GSCPT component captures any variation in other generation specific costs as a result of changes in other costs associated with the Power Purchase Agreements (PPAs) & Service Level Agreements (SLAs) and fuel procurement contracts i.e. Coal Supply Agreement (CSA), Coal Supply and Transportation Agreement (CSTA), Gas Supply Agreement (GSA) / Gas Framework Agreement (GFA) and etc.

How is the ICPT amount for pass through to customer is calculated?

The ICPT is calculated based on an estimated actual fuel cost and generation-related costs for a particular six (6) months period against the corresponding baseline costs in the Base Tariff.

Since its implementation in 2014, a total of RM9.3 billion of ICPT rebate and subsidy has been passed-through to electricity customers in Peninsular Malaysia while a total of RM4.9 billion of ICPT surcharge has been passed through to Non-Domestic Customers in Peninsular Malaysia.

*”Estimated actual” is an estimation made based on actual costs where available and estimated cost where information is not readily available.

How will the ICPT impact my electricity bill?

ICPT impact depends on the amount of energy consumed and the charge is reflected in form of rebate or surcharge monthly.

The ICPT rate is represented as sen/kWh and is applicable for every kWh of electricity consumed. Therefore, the calculation of ICPT charges will be:

ICPT Charges (sen) = Number of kWh consumed in a month (kWh) × ICPT rate (sen/kWh)

The ICPT charges will then be subtracted (rebate) or added (surcharge) from your current billed amount.

Sample of Bill for Domestic

Sample of Bill for Non-Domestic

Do all customers pay the same amount of ICPT charges?

No. The ICPT charge on your electricity bill may differ from your neighbours as the ICPT charge depends on your energy consumption (kWh) in a month. Therefore, this amount varies from one customer to another and from month to month, depending on the energy consumption.

Customers are advised to implement electricity saving measures as recommended by the Suruhanjaya Tenaga to optimise energy consumption and cost.

What is the initiative from Government for customers to anticipate the next ICPT rate?

The government has provided a user-friendly ICPT Calculation platform through the portal on Suruhanjaya Tenaga’s official website ( for more information. The ICPT calculator will help customers estimate ICPT rate on their monthly electricity bills beginning July 2022.

The purpose of this ICPT Calculator is to educate customers to be more sensitive and alert to the changes in fuel prices and foreign exchange rates in the market. Customers can key in the coal and gas price forecasts as well as the fuel price & forex forecast to estimate the cost of ICPT at the next tariff adjustment.

In addition, as a measure to minimize the cost of electricity bills, consumers in the Peninsula are encouraged to take advantage of the Net Energy Metering (NEM) Program and to implement measures to use electricity efficiently. There are various easy ways that can be done to minimize electricity consumption, among them are:

  • Conduct energy consumption audits by monitoring and analyzing electricity consumption as well as identifying equipment, processes and systems that can be improved to avoid waste energy.
  • Identify and acquire electrical appliances that have a 5-Star rating which provides more electrical energy savings. Currently, consumers can redeem e-rebates worth up to RM400 for every purchase of electrical appliances labeled 4 or 5 Stars. Among the electrical equipment involved in the SAVE 3.0 Program are air conditioners, refrigerators, rice cookers, microwaves, televisions and washing machines.
  • To make sure all switches are off when not in use to avoid wastage of electrical energy.