About ICPT FAQ

For the period of 1 January until 30 June 2025, the ICPT rate that will be pass through to customers are as below:

• The ICPT charges for Domestic customers (Tariff A) are as follows:


• ICPT rebate of 2 sen/kWh is maintained for electricity consumption up to 600 kWh only;
• ICPT surcharge of 0 sen/kWh (exempted) is maintained for electricity consumption from 601 kWh to 1,500 kWh; and
• ICPT surcharge of 10 sen/kWh is maintained for electricity consumption above 1,501 kWh.


• The ICPT charges for Non-Domestic customers are as follows:


• ICPT surcharge of 2.70 sen/kWh is maintained for low voltage commercial and low voltage industrial customers, low and medium voltage of specific agriculture customers (Tariff H, H1 & H2) and identified water and sewerage operators;
• ICPT surcharge of 16 sen/kWh is maintained for medium voltage and high voltage of other commercial, industrial, mining and streetlight (Neon & Floodlights, Individual Streetlights and Individual Compound Lighting) customers; and
• ICPT surcharge of 9 sen/kWh is maintained for streetlight customers (under local authorities).

To cushion the impact of the ICPT imposed to the customers, the Government has allocated RM2.4 billion which covers the total amount of rebates and surcharge costs.

For the period of 1 January until 30 June 2025, both Domestic and Non-Domestic customers will be impacted by the ICPT implementation, either in the form of rebate or surcharge. The electricity tariff adjustment for the customers in Peninsular Malaysia are as follows:

• ICPT rebate of 2 sen/kWh from the last ICPT implementation period is maintained for Domestic customers with a monthly consumption up to 600 kWh.


• ICPT surcharge of 0 sen/kWh (exempted) from the last ICPT implementation is maintained for Domestic customers with a monthly consumption from 601 kWh to 1,500 kWh.


• ICPT surcharge of 10 sen/kWh from the last ICPT implementation period is maintained for Domestic customers with a monthly consumption above 1,501kWh.


• ICPT surcharge of 2.70 sen/kWh from the last ICPT implementation period is maintained for Non-Domestic customers under low voltage commercial, low voltage industrial, low and medium voltage of specific agriculture and identified water and sewerage operators.


• ICPT surcharge of 16 sen/kWh from the last ICPT implementation period is maintained for medium voltage and high voltage of other commercial, industrial, mining and streetlight (Neon & Floodlights, Individual Streetlights and Individual Compound Lighting) customers.


• ICPT surcharge of 9 sen/kWh from the last ICPT implementation period is maintained for streetlight customers (under local authorities).

ICPT is a mechanism under the Incentive Based Regulation (IBR) framework which allows TNB as the utility to reflect changes (either increase or reduction) in fuel and other generation-related costs in the electricity tariff every six (6) months.

Suruhanjaya Tenaga as Malaysia’s energy regulator determines the calculation and methodology of the ICPT, subject to Government approval on a 6-monthly basis.

There are two ICPT key components::

• Fuel Cost Pass-Through (FCPT): FCPT component captures any variation in fuel cost (specific to gas and coal) as a result of changes in the fuel price, fuel quantity, generation mix, exchange rate and etc.


• Generation Specific Cost Pass-Through (GSCPT): GSCPT component captures any variation in other generation specific costs as a result of changes in other costs associated with the Power Purchase Agreements (PPAs) & Service Level Agreements (SLAs) and fuel procurement contracts i.e. Coal Supply Agreement (CSA), Coal Supply and Transportation Agreement (CSTA), Gas Supply Agreement (GSA) / Gas Framework Agreement (GFA) and etc.

The ICPT is calculated based on an estimated actual fuel cost and generation specific costs for a particular six (6) months period against the corresponding baseline costs in the Base Tariff.

This ICPT surcharge is mainly due to the significant increase in fuel cost (as a result from higher fuel prices). Given that more than half of Peninsular Malaysia’s generation source during this period is coal, the rise in coal price has resulted an increase in the overall generation cost by 53% for the period of July to December 2024.

Below are the ICPT key components for the period of July to December 2024:

• Higher average coal price in the global market at USD115/MT, compared to the benchmark coal price set in the base tariff at USD79/MT;


• Higher average Tier 1 gas price at RM33/mmBTU, compared to the benchmark Tier 1 gas price set in the base tariff at RM26/mmBTU; and


• Higher average Tier 2 gas price at RM46/mmBTU, compared to the benchmark Tier 2 gas price set in the base tariff at RM33/mmBTU.

It is a charge (in form of rebate or surcharge) that is applicable for every kWh of electricity consumed. ICPT is a variable component in the electricity bill where the ICPT is charged based on your consumption of electricity on a monthly basis.

The ICPT is straight “pass-through” charge and its calculation is the number of kWh consumed in a month multiplies by the ICPT rate (in sen/kWh). The ICPT charge will then be added to or subtracted from your current bill amount.

For the period of 1 January until 30 June 2025, both Domestic customers and Non-Domestic customers will be affected by the ICPT implementation, either in the form of rebate or surcharge.

The ICPT rebate and surcharge amount on your electricity bill may differ from your neighbour’s as it depends on your energy consumption (kWh) in a month. Therefore, this amount varies from one customer to another and from month to month, depending on the energy consumption.

The Government has provided a user-friendly ICPT Calculation platform through the www.myelectricitybill.my portal on Suruhanjaya Tenaga’s (www.st.gov.my) official website. The ICPT calculator will help customers estimate ICPT rate on their electricity bill every month.

The purpose of this ICPT Calculator is to educate customers to be more sensitive and alert to the changes in fuel prices and foreign exchange rates in the market. Customers can key in the coal and gas price forecasts as well as the fuel price & forex forecast to estimate the cost of ICPT at the next tariff adjustment.