Thursday, June 6, 2013

Calculation of the 1% levy for Renewable Energy fund

A TNB customer who sent his inquiry to the utility company shared this on FB and I thought it would be  a good read. The explanation is plain and simple for the masses.

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Imposition of 1% levy (clarification by TNB Careline)

Pleased to be informed, in line with the Renewable Energy (RE) Act which was passed in April 2011, the Government will impose 1% as Feed-in-Tariff (FiT) for RE Fund, effective 1st December 2011.

The fund will be utilized for promotion and development of RE projects and initiatives and will be managed by Sustainable Energy Development Authority (SEDA) under the Ministry of Energy, Green Technology and Water.

However, customers who consume 300 units (kWh) of electricity or less each month will not have their tariffs raised to pay to the Renewable Energy Fund. TNB's role only as an executor to implement government initiatives as the fund collecting agent, according to the Act.

For further information regarding FiT / Subsidi Bahan Api Kerajaaan Persekutuan / RE, please visit the authority's website at

According to bill, government charge 1% "levy" (Kumpulan Wang Tenaga Boleh Baharu/ KWTBB) from the total consumption every month as illustrated below:

Example of calculation for KWTBB

KWTBB = 1% × [bill – discount] 

bill - current month bill
discount - the given discount, if any

Thus, for a TNB bill of RM1,026.84 in April 2013, the charges is

KWTBB = RM1,026.84 x 1% = RM 10.27

Total payable = RM1,037.11

Note: At the moment, the 1% levy is only imposed in Peninsula Malaysia. SEDA is still waiting for an official letter from Sabah state government to enable it to collect the charges from consumers there. 

No news about the levy yet in Sarawak.


rainfield61 said...

We always do not have any right to say "no" to any of their implementation.

de engineur said...

Hmm, there's always a way. The ballot box.