Imbalance Cost Pass-Through cost expected to reach almost RM20b

The govt is looking into ways to address the high cost including provision of targeted subsidies

THE cost of electricity tariff adjustment through the Imbalance Cost Pass-Through (ICPT) mechanism from the period of July to December 2022 is estimated to reach almost RM20 billion, the Dewan Negara was told today.

Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said the amount was three times higher than the RM7 billion cost recorded from January to June this year (1H22).

“Just imagine, RM7 billion is equal to an ICPT surcharge of 11.81 sen/kilowatt hour (which should be imposed on all users). If the amount reaches almost RM20 billion, the government is taking a cautious approach.

“Therefore, the government is looking into ways to address the matter, including through the provision of targeted (energy) subsidies in the future,” he said, responding to a supplementary question from Senator Dr Wan Martina Wan Yusoff who wanted to know the measures taken by the government to help the people in facing the global energy crisis. 

Separately, on the measures the government took to ensure there is no increase in electricity tariffs, Takiyuddin said among the efforts taken was prioritising the use of least cost fuel dispatch for electricity generation.

He said the ministry had also prepared a long-term Generation Development Plan that sets the direction for the country’s electricity supply planning.

The government also planned to increase the share of renewable energy in its installed capacity to 31% in 2025 and 40% in 2035, under the Malaysia Renewable Energy Roadmap, he added. — Bernama / Pic by Bernama