Thursday, June 05, 2008

New Tariff for Electricity

News from Bursa Malaysia:

Type : Announcement

- New tariff structure to reflect and recover the increase in fuel prices
- No increase for domestic / household consumers whose monthly usage is up to 200 kWh (Lifeline band)
- Lower percentage increase for low voltage industrial and low voltage commercial consumers with monthly consumption of up to 200kWh, compared to consumers in their respective categories
- Effective 1st July 2008

Tenaga Nasional Berhad (TNB) wishes to announce that in line with the Government’s decision to review the gas price to the power sector, TNB has received the Government’s approval for a new tariff structure that is to be effective from 1st July 2008, which will allow TNB to recover the increase in gas and coal prices.

The price of gas to the power sector has increased by 123% from RM6.40 per mmBTU to RM14.31 per mmBTU, whilst coal price has risen by more than 170% since 2006. Gas and coal currently constitute 68% and 26% respectively of the total generation mix in Peninsular Malaysia. TNB has been purchasing gas at the subsidised price of RM6.40 per mmBTU from Petroliam Nasional Bhd (PETRONAS) since 1997. The relatively low tariff currently enjoyed by customers was partly due to this highly subsidised gas price.

Fuel cost is the main component in TNB’s operating costs and as a company, TNB could not continue to absorb the rising costs. The new tariff structure is necessary in view of the high fuel prices to enable TNB to continue to provide sustainable and reliable power supply for the country.

TNB will maintain the lifeline tariff rate for household consumers whose monthly electricity consumption is up to 200kWh, thus there will be no change in their electricity tariff. This group of consumers represents 59.1% of household consumers. Household consumers with monthly consumption of 201-400 kWh representing 26.7% of total households consumers are expected to experience between 1% to 10% increase in their monthly bill. The new tariff structure for domestic/household consumers has been designed to encourage large users to consume electricity more efficiently.

Commercial and industrial consumers are expected to experience an average increase of 26%. However, low voltage commercial and low voltage industrial consumers consuming up to 200kWh per month will experience a lower average increase of 18%. This lower increase will benefit small traders / retailers / shops / eateries.

The 10% discount for Government schools, Government institutions of higher learning, welfare homes and places of worship is maintained.

For more information on tariff please refer to the TNB website or New Tariff Booklet.


Anonymous said...

Dear Brothers...check the calculation of your TNB Bill

On the 18th July 2008, my electricity usage was read for the period between 13th June to 18th July 2008 and total usage was 631kwh. To my disappointment, the calculation on tariff was bias. The calculation was wrong and because of the reading was made on 18th July 2008, the total period was 35 days, therefore the additional kwh falls under higher tariff. For my analysis, the method of calculation which was explained to me by TNB personnel is to the advantage of TNB.
Details as follows:
Calculation method explained by TNB (1-300-88-5454) on 18th July 2008 betwewn 2:30pm to 2:45pm

Usage 631kwh

Calculation for the period of Jun 2008 (13th June to 31st Jun 2008)
18 days / 35 days * 200kwh (first 200 of the old tariff) = 102.8 => 103kwh
18 days / 35 days * 431kwh (subsequent of the old tariff) = 221.7 => 222kwh

103kwh X 0.218 = RM 22.45
222kwh X 0.289 = RM 64.16
*Usage of 631kwh is calculated for 18 days

Calculation for the period of July 2008 (1st July to 18th July 2008)
17 days / 35 days * 500kwh (first 500 of new tariff) = 242.8 => 243kwh
17 days / 35 days * 100kwh (subsequent of the new tariff) = 48.6 => 49kwh
17 days / 35 days * 31kwh (subsequent of the new tariff) = 15 => 15kwh

243kwh X 0.30 = RM72.90
49kwh X 0.39 = RM19.11
15kwh X 0.40 = RM 5.60
*Usage of 631kwh is calculated for 17 days
Bil sepenuh nya adalah seperti berikut:

103kwh X 0.218 = RM 22.45
222kwh X 0.289 = RM 64.16
243kwh X 0.30 = RM 72.90
49kwh X 0.39 = RM 19.11
15kwh X 0.40 = RM 5.60

Jumlah = RM184.22

*631kwh is being calculated twice even though partial usage falls in the old tariff
The correct calculation should be as follows:
Usage for the period of 13th June 2008 to 18th July 2008 equalvalent for 35 dyas is 631kwh which 18days falls under the old tariff and 17days falls into the new tariff.

18 days/35 days = 0.51
17 days /35 days = 0.49

June 2008 usage 0.51 X 631kwh = 325kwh
July 2008 usage 0.49 X 631kwh = 306kwh

Usage for the period of June 2008 based on the above calculation is 325kwh (Old tariff)

First 200kwh X 0.218 = RM43.60
Subsequent 123kwh X 0.289 = RM36.13

Usage for the period of June 2008 based on the above calculation is 306kwh
(New tariff)
First 200kwh X 0.218 = RM43.60
Subsequent 106kwh X 0.345 = RM36.57

Total bill
June 2008 = RM43.60
June 2008 = RM36.13
July 2008 = RM43.60
July 2008 = RM36.57
Jumlah : RM159.90
7.0 Conclusion
I believe that the calculation method used by TNB is to maximized profit at the expense of the public. It is very confusing and double counting on a single usage. For the public at large, most of them doesn’t know the actual calculation and take what ever method used by TNB.

In my case, why TNB took more than 30days to read the meter. When this happened, the reading will be more and it will fall into higher tariff and this will profit TNB and I have to pay more. Why should this happened?

Why does the usage 631kwh being calculated twice for the period of 13th June 2008 to 30th June 2008, and again being calculated for the period of 1st July 2008 to 18th July 2008? It should take 18days/35 days and this is a factor for June 2008 and 17days/35days will be the factor for July.
The meter reading policy MUST be change with immediate. All meter reading MUST be done within 25th to 30/31th of every month and not to the maximum of 36 days.

When I need to get clarification from TNB Rawang on the 18th July 2008 between 3pm and 3:30pm, there was nobody to come to my aid, telephone was not answered at 036092700. Do I need to travel to TNB Rawang from my office /home which is about 20km away? Will TNB bear my cost? Should I bear the cost when the mistake was made by TNB?

Its clear that TNB wishes to confused the public and make profit based on its calculation method and does care for the public at all.

TNB should be more efficient in doing the meter reading and use a better formula in calculation to avoid misunderstanding among the public.

Wan Faizal Zainal Abdin
Sg Buluh.

KEAN HONG said...

hi there, seem like TNB try to confusing everybody. For my case, as i use less than 200 kWh mthly, i do not face the problem like you. I should also remind my frens and relatives about this con-way by TNB.