Ministry of Energy, Green Technology and Water (KeTTHA) through Suruhanjaya Tenaga (ST) regulates your electricity tariff under a mechanism called Incentive Base Regulation (IBR).
This is to ensure that you enjoy reliable and secure supply of electricity at a reasonable price.
Incentive Base Regulation will ensure that you are not overpaying for your electricity.
The regulator will constantly monitor costs to ensure only necessary cost is passed through to the customers.
Under the regulator’s watch, the utility provider is also expected to perform efficiently with high quality service so that you’re getting your money’s worth.
ICPT is a mechanism under the Incentive Based Regulation (IBR) framework that allows TNB to reflect changes (either increase or reduce) in fuel and other generation-related costs in the electricity tariff every 6 months.
If the fuel prices are lower, you will enjoy a rebate in your electricity bills.
Since the implementation of IBR and ICPT in 2014, a total savings of RM 3.3 billion has been passed-through to customers. As highlighted in the chart, costs that fall below the estimated costs will be credited as rebates, whereas, higher costs will be recognised as surcharge.
This rebate is not permanent.
Any future rebate/surcharge is dependent on the changes in global fuel prices, which will be reviewed every 6 months.
For the period of July to December 2017,a total of RM1.303 billion will be passed-through to customers in the form of rebate at 1.52 sen/kWh.
In total, since the implementation of IBR and ICPT in 2014, the savings that is enjoyed by customers amounts to RM5.403 billion.
For the period January to Jun 2017, the ICPT review showed an increase in electricity supply cost of RM523.23 million or equivalent to a surcharge of 1.02 sen/kWh. This is mainly due to the increase of RM1.50/mmBTU in gas price, increase of coal price in the global market and impact of foreign exchange rate on ringgit.
There are two ICPT key components:
The ICPT charge on your electricity bill may differ from your neighbour's as the ICPT charge depends on your electrical consumption (kWh) in a month. Therefore, this amount varies from one customer to another, and from month to month, depending on the electrical consumption.
At exchange rate 1 USD = RM 3.1
for gas volume > 1,000 mmscfd
for gas volume ≤ 1,000 mmscfd