Govt may introduce two power tariff rates at end of 2015

KUALA LUMPUR: The government is looking to introduce the enhanced time of use (eTOU) mechanism by end of 2015 or early 2016 for electricity usage in Peninsular Malaysia and Sabah, said Energy, Green Technology and Water Ministry deputy secretary general Datuk Dr Nadzri Yahaya.
"We haven't made a final decision yet. The concept will enable consumers to know at any time, day or night, when the tariff is higher or lower and can capitalise on the differences to carry out their household activities or industries. There will be two tariff rates," he told reporters at the launch of ExxonMobil Energy Literacy Campaign yesterday.
He said the concept is similar to the mechanism adopted in Japan, which has two tariff rates. The concept in Japan has seen some industries changing work processes to utilise lower tariff rates at night.
Nadzri said tentatively, the ministry is looking at maintaining day time rates and lower night time rates but the exact rates have not been determined yet.
"We believe that eTOU will enable consumers to control their electricity usage, together with the industry and also the business sector," he added.
Nadzri said the eTOU will be implemented within the commercial sector and industries first, before it is rolled-out to the domestic sector.
He said the final decision on the details of the implementation will be made after reviewing the technicalities of the mechanism and after studying the results of two pilot studies being carried out in Malacca and Putrajaya.
"It takes time because it was just implemented in Malacca and Putrajaya. We don't have the results yet because they have to have a series of data for some months before you know whether it works," he added.
The two pilot studies are on the use of smart metres, which is needed in order to implement the eTOU. For areas that have ready infrastructure, the smart metre will be used while in other areas the digital metre will be used. The smart metre is a more advanced version of the digital metre, with additional functions.
"Smart metre enables consumers to track their electricity usage so they can plan. There are various functions such as you can phase it according to usage, when to use and more," said Nadzri.
He said the changing of mechanical metres to smart or digital metres will be done in phases. The cost of changing the metres will be borne by Tenaga Nasional Bhd (TNB).
"But before we implement it, we need to have a public awareness campaign to tell people when and where we want to change the metres. At present, we have not done that yet," he said, adding that TNB has already started changing faulty mechanical metres to digital metres.
"With the digital and smart metres, you are able to control remotely and TNB officers don't need to go to your house to check. If you encounter difficulties they will know up front what's the problem with your electrical supply in your house."
The digital and smart metres are more sensitive, accurate and reliable than the current mechanical metres used. Upon implementation, the new metres must be certified by the Energy Commission and SIRIM before installation.
Nadzri said the eTOU will not only help households, businesses and industries reduce cost, it will also help the ministry to manage electricity efficiently.