The government on June 16 agreed to implement the electricity tariff adjustment for NUR Power Sdn Bhd (NUR) in Kulim Hi-Tech Park (KHTP) under the Imbalance Cost Pass-Through (ICPT) mechanism from July 1 to Dec 31, 2023.
In a statement today, the Energy Commission (ST) said that through the electricity tariff adjustment, all domestic consumers (tariff N1) are exempted from paying the ICPT surcharge and will not experience an increase in the electricity tariff, while all non-domestic users will enjoy a reduction in surcharge rates from 8.19 sen/kWh to 5.39 sen/kWh.
“This adjustment takes into account the difference between fuel costs and the actual cost of electricity generation (over a six-month period) compared to the projected cost when the NUR base tariff rate was set.
“Any difference will be released in the form of a rebate or surcharge (sen/kWh) on the user’s electricity bill and if the actual cost exceeds the projected cost, the user will be charged a surcharge.
“However, if the actual cost is lower than the projected cost, the user will receive a rebate,” according to the statement.
The statement also said that for the ICPT review period from Jan 1 to June 30, 2023, the actual fuel cost and generation-related costs at KHTP were RM50.21 million higher than the projected costs in the basic tariff setting for the same period through the second regulatory period (RP2) under the incentive-based regulation (IBR) framework.
“Among the factors contributing to the increased cost was a rise in the average price of piped gas fuel, which reached RM34/mmBTU from January to June 2023 according to the Reference Market Price (RMP) formula compared to the projected RM26/mmBTU.
“The setting of electricity tariffs for NUR implemented through the IBR framework has two major components, namely the basic tariff and the ICPT. The base tariff does not change throughout the IBR regulatory period which is reviewed every three years.
“However, the ICPT rate is adjusted every six months depending on the change in fuel costs for electricity generation,” said the statement.
Source: BERNAMA News Agency