KUALA LUMPUR (Jan 15): Tenaga Nasional Bhd (TNB) announced today it will implement the Malaysian government-approved enhanced terms for the electricity connection charge and connected load charge effective from today.

A connection charge is the upfront payment made by consumers who require new electricity supply infrastructure or an upgrade of existing infrastructure to cater for additional power supply, according to government-controlled utility TNB.

"The connection charge is imposed as part of TNB’s cost to build the infrastructure for electricity supply," the company said on its website.

Meanwhile, the connected load charge is a mitigating tool to discourage consumers from over-declaring their electricity load requirement, TNB said.

Over-declaration will lead to over-plant up and waste of resources and an increase in the reserve margin, the group said.

"Without the connected load charge, other consumers will have to also pay for the unnecessary higher cost of electricity due to wastage, and this would be unfair to those who do properly declare,” TNB said.

On the connection charge, TNB said that based on the updated terms, consumers are categorised based on supply voltage levels.

TNB said there are three categories, namely the low voltage, medium voltage and high voltage groups.

The low voltage category is for supply voltage of below 6.6kV, while the medium voltage group involves 6.6kV to 132kV, and the high voltage category involves supply voltage of above 132kV, according to TNB.

"[For medium voltage consumers,] the connection charge per kilowatt maximum demand (kW MD) is applicable. The amount to be paid depends on the maximum demand requested by the consumer.

"The connection charge is RM45/kW MD,” TNB said.

On the connected load charge, TNB said a new consumer is subjected to the charge for a period of six years from the date electricity supply is connected.

Meanwhile, an upgrading consumer is subjected to the new connected load charge for a period of five years from the date the additional electricity supply is connected.

In TNB’s statement today, the company said the government recently approved the enhanced terms for the connection charge and connected load charge.

"The connection charge invoice (pro forma) issuance after Jan 15, 2021 is subjected to the new connection charge terms.

"For pro forma issuance before Jan 15, 2021 where the payment has not yet been made, customers may choose one of the following options: Proceed with payment based on the existing pro forma or request TNB to issue a new pro forma with the new connection charge terms,” TNB said.

At 4.05pm on Bursa Malaysia today, TNB’s share price was up four sen or 0.4% at RM10.16, valuing the company at about RM57.91 billion.

The counter had seen about two million shares traded.