10 sen surcharge – EV owners may have to pay more to charge their cars under new ICPT 2H 2023 scheme
EV owners may have to pay more to charge their electric cars at home as a new ICPT program for the second half of 2023 has been announced. Bills using more than 1,500 kWh a month will receive a surcharge of RM 0.10 per kWh, a total net movement of RM 0.12 compared to the RM 0.02 rebate received previously.
This means that the peak cost of living of RM0.571/kWh that we normally use to calculate household electric vehicle charging costs is now effectively RM0.671/kWh.
We typically use the RM0,571 rate because EVs are typically expensive items used in households with household electricity usage above the 901 kWh monthly range, where the highest cost of living is applied. use.
However, keep in mind that this RM0.10 per kWh surcharge does not only apply to usage above 1,500 kWh. When you use more than 1,500 kWh, the surcharge will apply to your entire TNB bill.
Therefore, if your usage is currently below the limit, adding an EV to your home can significantly increase your electricity bill, far more than just the amount of electricity your EV uses. consume. Electricity costs for everything else will also go up.
The surcharge is estimated to affect approximately 83,000 users. For others with less than 1,500 kWh a month usage, the previous ICPT RM0.02 discount remains in effect.
According to the government, average fuel costs for the first half of 2023 were $173.5 per tonne, down from $224 per ton in the second half of 2022 used to calculate the previous ICPT rate.
In addition, the government also announced it will revise its Residential Net Solar Measurement (NEM) scheme to be less restrictive than the current 10 kW limit for 3-phase power. and 4 kW for single phase supply, but don’t know more details about that yet.
What is ICPT?
ICPT is essentially a mechanism that reviews electricity tariffs every six months to account for fluctuations in fuel prices, which contribute up to 65% of the cost component of electricity tariffs. It is revised every six months based on the previous six-month period, so this new ICPT surcharge for the second half of 2023 is based on fuel prices for the first half of 2023.
