Here’s how households will end up paying extra due to TNB’s new surcharge

TTF: The message we’re being given here (see news item below) is this:

“Companies will have to pay more for their power supply from July 1, but don’t worry, you guys at home will not be affected.”

And everybody lives happily ever after thinking that Pakatan kept its promise to help reduce the cost of living, yes?

Well, think again.

It doesn’t take a genius to figure out that the more dollars manufacturers fork out to produce goods, the more you guys will have to pay to purchase those goods. TNB may as well have just charged you guys more for electricity and left the companies alone. That way, you’d have ended up with a one-off monthly surcharge that would likely have run into some ringgits, instead of the hundreds in hidden costs you’re now going to end up paying on a monthly basis each time you go shopping or open your mouths to eat.

Malaysia Baru, anyone?

KUALA LUMPUR: Companies will have to pay more for their power supply from July 1 to December 2018 following the implementation of a surcharge of 1.35 sen per kWh due to higher fuel and generation costs.

Tenaga Nasional said on Friday that households would be not affected by the surcharge under the imbalance cost pass-through (ICPT) mechanism.

The power giant said the government had approved the continued implementation of the ICPT mechanism which allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months.

TNB explained the average base tariff remains unchanged at 39.45 sen/kWh. However, due to  the higher fuel and generation costs in January to June 30, the additional cost of RM698.19 million or 1.35 sen/kWh ICPT surcharge, will be pass-through via the ICPT mechanism.

“Domestic customers with monthly consumption below 300kWh will not be affected by this ICPT implementation.

“For domestic customers with monthly consumption above 300kWh, the ICPT surcharge will be funded by Kumpulan Wang Industri Elektrik (KWIE),” it said.

The ICPT is a mechanism approved by the government and implemented by the Energy Commission since Jan 1, 2014 as part of a wider regulatory reform called the Incentive Based Regulation (IBR).

“TNB also wishes to inform that the impact of ICPT implementation is neutral on TNB and will not have any effect to its business operations and financial position,” it said.

Source: The Star Online

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