Electricity surcharges, rebates under ICPT are in sen, not ringgit, says SESB

KOTA KINABALU: Surcharges or rebates imposed on users through the Imbalance Cost Pass Through (ICPT) mechanism implemented in Sabah and the Federal Territory of Labuan are in sen and not ringgit, says Sabah Electricity Sdn Bhd (SESB).

SESB chief executive officer Mohd Yaakob Jaafar said the implementation of the ICPT at a rate of 7.21 sen/kWh is for a six-month period from Jan 1 to June 30, 2024.

He said this following confusion over the issue, as it has been stated that the tariff increase is due to the implementation of ICPT of RM7.21/kWh.

"This triggered concern among the consumers," he said in a statement on Sunday (Jan 7).

"The ICPT is a mechanism approved by the Federal Government and implemented by the Energy Commission starting on Jan 1, 2022, under the Incentive-Based Regulation (IBR) framework.

For Sabah and W.P Labuan IBR will be implemented from Jan 1, 2022, to Dec 31, 2024, for the first regulatory period (RP1) of three years," he added.

Mohd Yaakob then said that the ICPT rebate or surcharge was not applied in 2022 because it is absorbed by the government.

"On Jan 1, 2023, the ICPT surcharge started to be charged at a rate of 10.04 sen/kWh for a period of six months (till June 2023). The rate dropped to 2.11 sen/kWh for the period of July 1- to Dec 31 2023 while the surcharge imposed from Jan 1 2024 to June 30 2024 is 7.21 sen/kWh," he said.

Meanwhile, Mohd Yaakob said the government agreed to cover the electricity subsidy cost of RM161.70mil for certain categories of users to minimise the impact of ICPT.

He said that this means that almost all low voltage domestic and non-domestic users will not be affected by the implementation of this latest ICPT surcharge.

"The ICPT mechanism allows SESB as an electricity utility to overcome changes (either increase or decrease) in fuel costs and electricity generation costs to be released to consumers through electricity tariffs every six months,” said Mohd Yaakob.

He said these costs for the purpose of adjustments would come in the form of rebates or surcharges.

"ICPT rebates or surcharges have been implemented in Sabah and W.P. Labuan since 2023. The regulatory body which is the Energy Commission or now the Energy Commission of Sabah (ECoS) will review the rebate every six months," he said.