Understanding Your Electricity Bill
The electric bill - it comes once a month. Most of us glance at the balance due, and make plans to pay that amount. But the electric bill is more than just the amount owed. The bill is full of information that can be useful in helping you better understand your electric usage
HOW TO READ YOUR ELECTRICITY BILL
Your electricity bill contains a lot of information. This page will help you understand the most important billing components in your electricity bill.
Imbalance Cost Pass Through (ICPT) is a mechanism under the Incentive Based Regulation (IBR) framework which allows for TNB, as the utility, to reflect changes in fuel and other generation-related costs in the electricity tariff. This is because these costs are set based on benchmarked prices in the base tariff.
The implementation of ICPT, which occurs every 6 months, would reflect the actual costs in tariff in the form of rebate or surcharge. Furthermore, the impact of ICPT implementation is neutral on TNB and will not have any effect on its business operations and financial position.
On 23 June 2023, The Government of Malaysia decided to introduce a targeted subsidy scheme for the ICPT implementation period from 1 July 2023 until 31 December 2023. The ICPT rates for the period of six (6) months from 1 July 2023 to 31 December 2023 according to customer categories and tariff type are as follows:
Imbalance Cost Pass Through (ICPT) formula = Total kWh Consumption x ICPT Rate (sen/kWh).
Example 1: ICPT Calculation for Domestic, Tariff A
Consumption in August 2023 is 1,500kWh, ICPT rate is –RM0.02/kWh
ICPT charge
=1,500kWh x (-0.02
=-RM 30.00
Example 2: ICPT Calculation for Domestic, Tariff A
Consumption in August 2023 is 1,501kWh, ICPT rate is RM0.10/kWh
ICPT charge
=1,501 kWh x (0.10)
=RM 150.10
Find out more info in ICPT FAQ and https://myelectricitybill.my
Under Service Tax Act 2018, provision of electricity is prescribed as a taxable service subject to 6% Service Tax. As a registered taxable person, TNB is complied to charge Service Tax for provision of electricity.
First Schedule (Regulation 3), Service Tax Regulation 2018 clearly states the provision of electricity to any Domestic Customer excluding for the first 600 kWh for a minimum period of 28 days per billing cycle consumed by the customer.
Therefore, Service Tax (ST) at the rate of 6% will be charged in TNB electricity bills for Residential Customer with consumption more than 600 kWh @ RM 231.80 effective from 1 September 2018.
Service Tax in the bill for the month of Aug/Sept 2018 will be prorated
TNB as a taxable person have to charge the Service Tax as stipulated in the Service Tax Act 2018. The tax collected will be remitted to Royal Malaysian Custom Department.
The 28 day billing rule is applicable where the entire consumption will be charged Service Tax if the billing period is less than 28 days.
The amount of ST charged will be clearly stated in the electricity bill issued to customer for the items which are subject to ST.
The billing components related to consumption (kWh) is subjected to Service Tax are:
Energy Consumption (kWh)
Discounts (Service Tax will be calculated after discount)
Imbalance Cost Pass Through (ICPT)
Temporary Load Charge
For more information, you can visit Royal Malaysian Custom Department website at mysst.customs.gov.my
Example 1: Customer with consumption > 600 kWh @ above RM 231.80 where billing period is 31 days (above 28 days)
Example 2: Customer with consumption < 600 kWh but billing period is 26 days (below 28 days)
