KUALA LUMPUR (Jan 12): The government has extended the exemption of imbalance cost pass through (ICPT) charge on Green Electricity Tariff (GET) in the first half of 2023, and maintaining a surcharge of 3.7 sen/kWh for the GET in the period.

In the meantime, the Energy Commission (EC) will be reviewing the ICPT exemption incentive for the 2H2023 period in order to ensure clarity and fairness of the mechanism, the Ministry of Natural Resources, Environment and Climate Change said in a statement.

The review will take into account the security, reliability and sustainability of the electricity supply system holistically, the ministry added.

Exemption for GET subscribers for the ICPT, which reflects fluctuation of fuel prices used in conventional power generation, was scheduled to end on Dec 31, 2022.

With the six-month extension, GET subscribers will continue to be charged just the base electricity tariff as well as the 3.7 sen/kWh GET surcharge.

With the GET, carbon-conscious consumers without their own renewable energy installation can take up the grid's renewable energy quota in exchange for Malaysian Renewable Energy Certificate (mREC) to improve their score in the Environment, Social and Governance (ESG) aspect.

These consumers are also supporting further development of the local renewable energy sector, as proceeds from the surcharge will be used to support the nation’s RE development initiatives and agenda.