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mpma.org.my

37, Jalan 20/14, Paramount Garden T 603 7876 3027

46300 Petaling Jaya, Selangor Darul Ehsan F 603 7876 8352MALAYSIA 

MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION

No: 16/2015

TO: ALL MPMA MEMBERS DATE: 1 December 2015

1. Enhanced Time of Use (ETOU) Electricity Tariff Scheme

2. Gradual Removal of Special Industrial Tariff (SIT)

The Energy Commission of Malaysia informed that a new scheme, the Enhanced Time of Use (ETOU)Electricity Tariff Scheme will be introduced as an option of the existing Off-Peak tariff scheme.

Under the existing Off-Peak Tariff (C2 and E2, E3), there are two time zones: Peak and Off-PeakEnergy Rates. There are also Demand Charges during peak hours. For ETOU, there will be three timezones: Peak, Mid-Peak and Off-Peak Energy Rates. Demand charges will be imposed on Peak andMid-Peak hours.

The breakdown of the Off-Peak and Peak hours of the existing scheme are as follows:

Off-Peak Hours Peak-Hours

10pm – 8am 8am – 10pm

The breakdown of the Off-Peak, Mid-Peak and Peak hours of the ETOU scheme are as follows:

Off-Peak Mid-Peak Peak Mid-Peak Peak Mid-Peak

10pm - 8am 8am -11am 11am - 12pm 12pm - 2pm 2pm - 5pm 5pm – 10pm

The ETOU offers Off-Peak rates throughout weekends (24 hours a day) and five fixed Public Holidays.

The ETOU is an optional scheme. It will be effective from 1 January 2016 for Commercial Customers

(Tariff C1 and C2) and Industrial Customers (Tariff E1, E1s, E2, E2s, E3 and E3s). TNB users mayopt for this scheme by entering into a contract for at least six months with TNB.

Three different tariff rates will be applicable during the Peak, Off-Peak and Mid-Peak periods and twodifferent demand charge will be applicable for Peak and Mid-Peak, all during weekdays. For allweekends and the five gazetted public holidays, only Off-Peak rate is applicable.

TNB’s proposed ETOU rates are summarised as follows: 

Tariff Category Demand Charge (RM/kW/Month) Energy Charge (sen/kWh)

Peak Mid-Peak Peak Mid-Peak Off-Peak

Commercial C1 34.00 28.80 58.40 35.70 28.10

Commercial C2 48.40 42.60 63.60 33.90 22.40

Industrial D 42.10 37.20 48.40 32.70 24.90Industrial E1 35.50 29.60 56.60 33.30 22.50

Industrial E2 40.00 36.00 59.20 33.20 21.90

Industrial E3 38.30 35.00 57.60 32.70 20.20

Members are advised to analyse your energy consumption pattern in order to understand whether thenew ETOU will provide more benefits compared to your existing Off-peak Scheme. If the ETOU is notbeneficial, you may opt to maintain your existing scheme.

For Tariff D users, ETOU will be effective from 1 January 2017. This is because new meters wouldneed to be installed, and TNB would need to modify its billing system. Since the existing Tariff D usersare not entitled for any Off-Peak rate, the ETOU is expected to offer substantial savings.

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Special Industrial Tariff (SIT)

The Special Industrial Tariff (SIT) was introduced in 1996. The SIT was introduced to all industries(Tariff D, E1, E2 and E3) with electricity consumption being 5% or more of their total production costs.

The new eligibility criterial for SIT are as follows:

(i) Only existing SIT customers may apply for SIT after 2 January 2016. Existing customers whohave applied for SIT at least once in the last three years (2013-2015) are still entitled to applybased on the new policy.

(ii) New SIT application will only be accepted up to 1 January 2016 except for pre-awardedcustomers under 1st principle calculation for Connection Charges payment (Customers takingsupply at 132kV and above).

(iii) Energy cost must be at least 5% of total production cost.

(iv) Energy Efficiency requirements - the appointment of Energy Manager (internal or external) withvalid Energy Manager Certificate.

(v) Energy Efficiency requirement – Baseline kWh/unit production – historical data for previous oneyear (12 months). The historical baseline is mandatory and is required for subsequent year’seligibility.

(vi) Energy Efficiency (EE) plan endorsed by Energy Manager.

Gradual removal of SIT discount effective from 1 January 2016

The Government plans to gradually remove the SIT at 2% from January 2016 until January 2020. No

new SIT application after 1 January 2016. All new SIT eligibility criteria as specified by EnergyCommission based on energy efficiency mechanism as mentioned on items (iv) – (vi) above.

The gradual removal schedule of 2% SIT discount yearly from January 2016 until January 2020 aresummarised as follows:

Category CurrentDiscount

Rate

January2016

January2017

January2018

January2019

January2020

Tariff E3s 10.30% 8.30% 6.30% 4.30% 2.30% 0.00%

Tariff E2s 8.30% 6.30% 4.30% 2.30% 0.30% 0.00% 

Tariff E1s 4.80% 2.80% 0.80% 0.00%  0.00%  0.00% 

Tariff Ds 3.00% 3.00% 1.00% 0.00%  0.00%  0.00% 

For further clarification, please contact Mr SC Chan of the MPMA Secretariat at Tel: 603-7876 3027or E-mail: scchan@mpma.org.my. 

Thank you.

Yours sincerely,

ST GIAM

Executive Director