Affordability has always been one of the biggest selling points of electric vehicles (EVs), as it generally costs considerably lesser to upkeep and maintain – at least for the first eight or so years until the battery warranty runs out. But that could possibly change soon, as a result of the revised electricity tariff that will come into effect for the second half of 2023, starting July 1.
According to the revised electricity tariff based on the Imbalance Cost Pass-Through (ICPT) scheme, domestic consumers who utilise more than 1,500 kWh per month will incur a RM0.10 surcharge per kWh. The surcharge is also applicable to your entire electricity bill, rather than just usage above the 1,500 kWh limit.
For EV users, especially those who frequently travel long distances, the hard ‘switchover point’ mechanism means that charging your vehicle at home could potentially result in a significant hike in your monthly electricity bill – and not just increased cost for EV charging – as the surcharge is still applied to your entire bill, even if you only use 1,500.1 kWh.
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In practice, the surcharge also translates to a nett +RM0.12 swing per kWh, as domestic users previously enjoyed a rebate of RM0.02/kWh. Consumers who utilise less than RM1,500 kWh, though, will still continue to receive the rebate.
The Ministry of Natural Resources, Environment, and Climate Change (NRECC) says that only approximately 83,000 consumers (1% of domestic users) will be affected by this change. Customers in this category will see a minimum increase of 25% (RM187) to their electricity bills (RM708 for 1,500 kWh based on latest tariffs).
The Ministry says that the new ICPT-based surcharge is a based on the fuel prices in the preceding six months (January to June 2023), of which global coal prices still far exceeds the projected fuel costs, despite a slight decrease in average fuel price.
For the period of July 1 to December 31, 2023, the government will be allocating a total of RM5.2 billion in electricity subsidies; the majority of domestic consumers and non-domestic low voltage consumers will not be affected by the new tariffs.
[H/T: Paultan.org]
