ICPT surcharge reduction 'minimal', 'disappointing', says FMM

ICPT surcharge reduction 'minimal', 'disappointing', says FMM

PETALING JAYA: The reduction of 1 sen/kWh from July to December 2024 in ICPT (imbalance cost pass-through) surcharge has been called "minimal" and "disappointing" by the Federation of Malaysian Manufacturers (FMM).

FMM president Tan Sri Soh Thian Lai said that despite a decline in coal prices over the past year, the surcharge for commercial and industrial users has only been lowered from 17 sen/kWh to 16 sen/kWh.

"The industry hopes for more transparency in the calculation of the surcharge and at arriving at the 1 sen/kWh surcharge reduction that has been announced for the non-domestic users," he said in a statement on Saturday (June 29).

He also urged the government to review the eligibility criteria for small and medium enterprises (SMEs) under the medium voltage (MV) category.

This change would allow SMEs to benefit from a lower surcharge rate, akin to the one granted to the water services sector, which was recently reduced to 2.7 sen/kWh from the previous 3.7 sen/kWh, he said.

"Micro, small and medium enterprises (MSMEs) account for 98% of total business establishments in Malaysia, employing 7.3 million of our workforce. Malaysian MSMEs also contribute to 37.4% of the country’s GDP and the continued high surcharge environment would not be tenable for MSMEs to remain competitive in the long run," he said.