KOTA KINABALU: The Sabah government is allocating RM50.9mil for a six-month imbalance cost pass-through (ICPT) surcharge subsidy for electricity consumers from Jan 1 to June 30.
This way, consumers will still enjoy the rates they have been getting all these years, said Chief Minister Datuk Seri Hajiji Noor.
He said the ICPT will apply to domestic consumers with monthly consumption of 1,500kWh or less (or a monthly electricity bill of not more than RM677) and non-domestic consumers in the low-voltage tariff category (CM1 and ID1).
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This includes micro, small and medium enterprises (MSMEs), he said in a statement on Friday (Dec 20).
“To give the surcharge exemption, the state government would allocate an ICPT subsidy of RM50.9mil.
“We have also requested a fuel subsidy totalling RM278mil from the Federal Government for this purpose, which is necessary due to the increase in energy generation costs resulting from the rise in fuel prices influenced by global impacts,” Hajiji said.
According to him, the state Cabinet met earlier this month and decided to allocate the ICPT subsidy.
He said the subsidy to Sabah Electricity Sdn Bhd and public licence holders would benefit 693,834 account holders or 99% of total electricity consumers in Sabah.
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For other categories of consumers (domestic users with electricity consumption exceeding 1,500kWh and non-domestic consumers with medium voltage or large users, as well as public street lighting), the surcharge rate would remain at 4.06 sen/kWh, said Hajiji.
The ICPT mechanism allows Tenaga Nasional Berhad (TNB) to adjust electricity tariffs based on costs incurred from fuel price fluctuations and changes in the electricity generation mix.
This mechanism aims to ensure that the prices consumers pay for electricity reflect the actual costs of generation.
The ICPT allows for periodic adjustments to electricity bills – typically reviewed every six months – so that any significant changes in fuel costs can be passed along to consumers and help TNB manage financial risks caused by volatile fuel prices.
