My usage is very much the same, but my TNB bill has increased a lot… why?

 No! TNB hasn’t increased the electricity price… Yet..

If you noticed your TNB bill increased a lot recently, it is probably because of adjustment in ICPT!




Steel industry faced an additional RM100 million cost because of ICPT! And this is when ICPT is surcharge RM0.0135 per kWh (in 2018).

What is the current ICPT now? Surcharge RM0.037 per kWh….



So what is Imbalance Cost Pass Through (ICPT)?

ICPT is a mechanism that allows the utility (means TNB) to reflect the changes in fuel and other generation related costs in the electricity price.


In other words, the tariff that TNB sells electricity to us is made based on the assumption of fuel cost, and other generation related costs.

TNB cannot simply adjust this electricity price without the approval of the Suruhanjaya Tenaga (ST).

Hence, when there are differences between the assumption made and the actual fuel & other generation related costs, TNB will reflect it into the electricity price.


For example, when the fuel and other generation costs increase to an amount higher than TNB assumption, there will be a surcharge ICPT per unit electricity we use - surcharge RM0.037 per kWh now.

Say you’re a low voltage commercial user (Tariff B), you’re paying RM0.509 for each unit of electricity you use. When ICPT is surcharge RM0.037 per kWh, you will need to pay RM0.546 per unit electricity use.

Don’t forget you also need to contribute to the 1.6% RE fund. All in all, you pay about RM0.5541 per unit electricity use. 


BUT! When the actual cost is lower than TNB assumption, there will be a discount ICPT per unit electricity we use.

And this ICPT rate will be reviewed by ST every 6 months…


To us (consumers), we see it as an increase in electricity price! 

But to TNB, actually they only pass the cost to us. The ICPT isn't an additional profit to them. That’s why it is called cost pass through.


But the fact is that with the global energy price hike, inflation etc, the electricity price in Malaysia is getting more expensive.

Although our electricity price has yet to increase, the cost to generate it is getting higher and TNB is not going to absorb it.

They will pass the additional cost to us consumers. 

So, if you have funds or a budget available, try to generate your own power and minimize your TNB usage. 

Solar PV system is a good option. 

Hope the latest ICPT didn’t impact you much…



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