MALAYSIAN PLASTICS MANUFACTURERS ASSOCIATION

No: 16/2015
TO:

1.
2.

ALL MPMA MEMBERS

DATE:

1 December 2015

Enhanced Time of Use (ETOU) Electricity Tariff Scheme

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-Peak
Energy Rates. There are also Demand Charges during peak hours. For ETOU, there will be three time
zones: Peak, Mid-Peak and Off-Peak Energy Rates. Demand charges will be imposed on Peak and
Mid-Peak hours.
The breakdown of the Off-Peak and Peak hours of the existing scheme are as follows:
Off-Peak Hours
10pm 8am

Peak-Hours
8am 10pm

The breakdown of the Off-Peak, Mid-Peak and Peak hours of the ETOU scheme are as follows:
Off-Peak
10pm - 8am

Mid-Peak
8am -11am

Peak
11am - 12pm

Mid-Peak
12pm - 2pm

Peak
2pm - 5pm

Mid-Peak
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 may
opt 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 two
different demand charge will be applicable for Peak and Mid-Peak, all during weekdays. For all
weekends and the five gazetted public holidays, only Off-Peak rate is applicable.
TNBs proposed ETOU rates are summarised as follows:
Tariff Category
Commercial C1
Commercial C2
Industrial D
Industrial E1
Industrial E2
Industrial E3

Demand Charge (RM/kW/Month)

Peak
Mid-Peak
34.00
28.80
48.40
42.60
42.10
37.20
35.50
29.60
40.00
36.00
38.30
35.00

Energy Charge (sen/kWh)

Peak
Mid-Peak
58.40
35.70
63.60
33.90
48.40
32.70
56.60
33.30
59.20
33.20
57.60
32.70

Off-Peak
28.10
22.40
24.90
22.50
21.90
20.20

Members are advised to analyse your energy consumption pattern in order to understand whether the
new ETOU will provide more benefits compared to your existing Off-peak Scheme. If the ETOU is not
beneficial, 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 would
need to be installed, and TNB would need to modify its billing system. Since the existing Tariff D users
are not entitled for any Off-Peak rate, the ETOU is expected to offer substantial savings.

mpma.org.my

37, Jalan 20/14, Paramount Garden

46300 Petaling Jaya, Selangor Darul Ehsan
MALAYSIA

T 603 7876 3027

F 603 7876 8352

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 who
have applied for SIT at least once in the last three years (2013-2015) are still entitled to apply
based on the new policy.

(ii)

New SIT application will only be accepted up to 1 January 2016 except for pre-awarded
customers under 1st principle calculation for Connection Charges payment (Customers taking
supply 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) with
valid Energy Manager Certificate.

(v)

Energy Efficiency requirement Baseline kWh/unit production historical data for previous one
year (12 months). The historical baseline is mandatory and is required for subsequent years
eligibility.

(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 Energy
Commission 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 are
summarised as follows:
Category

January
2016

January
2017

January
2018

January
2019

January
2020

Tariff E3s

Current
Discount
Rate
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 3027
or E-mail: scchan@mpma.org.my.
Thank you.

Yours sincerely,

ST GIAM
Executive Director

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