pic by MUHD AMIN NAHARUL

TENAGA Nasional Bhd (TNB) will introduce an alternative electricity tariff scheme for domestic users in the first quarter of 2020 (1Q20), said Deputy Energy, Science, Technology, Environment and Climate Change Minister Isnaraissah Munirah Majilis (picture).

She said the enhanced time of use (ETOU) scheme, which offers different tariff rates at different times of the day, will be extended to domestic users as an option which is more cost-effective.

TNB first introduced the scheme in January 2016, but application has been limited to commercial users.

“The ETOU scheme will allow domestic consumers to have greater control over their electricity usage. Electricity can be used more efficiently when consumers are given the ability to reduce their usage at peak periods where rates are higher. If consumers operate outside of peak hours, they can enjoy lower rates and reduce their electricity bills,” she told the Dewan Rakyat yesterday.

The deputy minister was responding to a question by Shaharizukirnain Abd Kadir (PAS-Setiu) who asked if charges will be higher with the new tariff. Isnaraissah Munirah denied any hikes and added that the ETOU scheme is not mandatory, but will present an option to users.

“Once it is made available to domestic users, they will have the freedom to choose either to retain the original tariff scheme or switch to the ETOU scheme.

“Currently, the Malaysian Energy Commission (ST) is still in the process of determining suitable rates for peak, mid-peak and off-peak periods. We hope it can be rolled out to domestic consumers by 1Q20,” Isnaraissah Munirah said.

In June, the government announced that there will be no electricity tariff surcharge imposed on domestic users from July 1 to Dec 31 this year. Putrajaya had also agreed to keep the electricity surcharge rate at 2.55 sen per kilowatt hour (kWh) for commercial and industrial users over the same period.

This means that the current average base tariff rate would remain unchanged at 39.45 sen per kWh.

The ST said the rates were fixed after the government gave its approval for TNB to continue implementing the imbalance cost pass-through (ICPT) mechanism throughout the said period.

The ICPT is a mechanism approved by the government and implemented by the ST as part of a wider regulatory reform known as the incentive-based regulation.

The mechanism allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months.