1. What is fuel subsidy displayed in consumer’s electricity bill?
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According to the announcement made by the Prime Minister on 24 June 2022, the Federal Government has decided to maintain the Imbalance Cost Pass-Through (ICPT) rates for all customers in Peninsular Malaysia for the period 1 July 2022 to 31 December 2022 despite the increase in fuel costs and other generation costs of RM7.0 billion for the period 1 January 2022 to 30 June 2022 which is equivalent to the actual ICPT surcharge at the rate of RM0.1181/kWh.
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To bear the cost of fuel and generation and to ensure the retention of the ICPT rate, the Government has allocated a fund of RM5.8 billion which is a fuel subsidy on electricity bills for all residential and non-residential customers.
- The fuel subsidy amount stated on the electricity bill is based on the total monthly electricity consumption in kWh and is only as a reference and notification, without involving any financial transactions.
2. What does the actual bill amount without subsidies mean?
The actual bill amount without subsidies refers to the actual cost of electricity that customers have to pay for their electricity usage if no fuel subsidy is borne by the Government. This amount refers to the current charges and subsidies borne by the Government based on the electricity consumption for the month.
3. How is the amount of subsidy calculated?
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The amount of subsidy is calculated based on the difference in the ICPT rebate or surcharge rate charged according to the customer category compared to the actual ICPT surcharge rate for the period 1 July 2022 to 31 December 2022, which is RM0.1181/kWh.
Total fuel subsidy = (Actual ICPT surcharge rate – ICPT rate by customer category) x electricity consumption in kWh
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For electricity consumption before 1 July 2022, the amount of fuel subsidy is based on the difference in the ICPT rebate or ICPT surcharge rate charged according to the customer category compared to the actual ICPT surcharge rate for the period 1 January 2022 to 30 June 2022, which is RM0.037/kWh.
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The following are the ICPT rates by customer category for a period of six (6) months of ICPT implementation from 1 July 2022 to 31 December 2022:
Customer Tariff Type ICPT Implementation ICPT Rate Residential
Domestic – Tariff A
Rebate
RM-0.02/kWj
Non-Residential
Commercial, Industrial, Specific Agriculture, Mining, Streetlight
Surcharge
RM0.037/kWj
4. How often will the calculation of this subsidy be revised?
The fuel subsidy calculation will be revised based on the revision of changes in either the increase or reduction in fuel costs every six (6) months by the Government of Malaysia.
5. Where is this subsidy message displayed in the electricity bill?
Examples of subsidy message displays in three types of electricity bills are as follows:
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Physical Bill (thermal bill)
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Digital Bill (online bill)
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Digital Bill with refreshed design
6. Is this subsidy message displayed in all types of electricity bills?
Yes, this subsidy message will be displayed in all types of customers’ electricity bills except for bills that are not subject to ICPT surcharges or rebates such as bills with minimum charges and bills with negative current charges.
In addition, electricity bills of customers who subscribe to Green Electricity Tariff (GET) with total monthly kWh usage less than total kWh GET subscription also do not display subsidy message where ICPT exemptions are granted on GET programme subscriptions until 31 December 2022.
7. How is the fuel subsidy calculated for Net Energy Metering (NEM) and Malaysia Building Integrated Photovoltaic Technology (MBIPV) customers?
The fuel subsidy calculation for NEM and MBIPV customers is based on the total monthly import consumption (kWh) while for NEM and MBIPV customers who subscribe to the Green Electricity Tariff (GET), the subsidy calculation is based on the monthly total ‘net’ energy usage, i.e. after deducting the recorded export consumption (kWh) from import consumption (kWh).
8. Examples of fuel subsidies calculation in consumer’s electricity bill:
Scenario 1 - Residential category customer (Monthly consumption of 1,465 kWh)
Total Fuel Subsidy
= (Actual ICPT surcharge rate – ICPT rate based on customer category) x monthly consumption in kWh|
= [RM0.1181 – (-RM0.02)] x 1,465kWh
= RM202.32
Actual bill amount without subsidy
= Current Charge + Total Fuel Subsidy
= RM 728.56 + RM202.32
= RM 930.88
Senario 2 – Non Residential category customer (Monthly consumption of 1,042 kWh)
Total Fuel Subsidy
= (Actual ICPT surcharge rate – ICPT rate based on customer category) x monthly consumption in kWh
= [RM0.1181 – (RM0.037)] x 1,042kWh
= RM84.51
Actual bill amount without subsidy
= Current Charge + Total Fuel Subsidy
= RM562.38 + RM84.51
= RM646.89
