Reply to Roger Tan's 'TNB must not overcharge the consumers' — TNB

We would like to refer to Mr Roger Tan’s letter posted by Malay Mail on Monday, 1st June 2020 12:10 PM in ‘What You Think’ section with the title “TNB must not overcharge the consumers – Roger Tan.”

 On behalf of Tenaga Nasional Berhad, we would like to make some clarifications.

TNB is one of the essential services during the Movement Control Order (MCO) and Conditional Movement Control Order (CMCO). Therefore throughout these periods, TNB has ensured continuous operation to keep the lights on for the rakyat. However, TNB has decided that during the MCO, on-site meter reading operation and bill rendering at customers’ premises were halted in order to stop the spread of Covid-19, as well as to safeguard the safety of the public and our meter readers. Hence, estimated bills were generated based on the previous months’ electricity usage and bill amount. These bills were made available in myTNB portal and mobile application whereby customers have been advised to register and install. 

Starting 15th May 2020, meter reading operation and physical bill rendering had resumed in stages. Customers would receive their bills based on actual meter reading for usage exceeding 1 month. This may result in higher amount of bill because of the increased electricity usage during the MCO.

Mr Tan was correct in that the bill rendered in May stated that the consumption period of 93 days was for the total usage of 5,310 kWh, and the amount due is RM2,151.90 (based on the attached bill dated 29 May 2020 on the website (Ref). TNB has been using the prorate method to calculate electricity bill.

To understand how the prorate method works, the calculation below shows how much Mr Tan’s consumption of 5,310 kWh without prorating the same.

i) Amount of bill without prorate method 

Tariff Block (per month)	Consumption (kWh)	Tariff (RM)	Amount (RM)
200	200	0.218	43.60
100	100	0.334	33.40
300	300	0.516	154.80
300	300	0.546	163.80
> 900	4,410	0.571	2,518.11
Total usage: 5310			2,913.71

With the prorate method, Mr. Tan’s electricity consumption of 5,310 kWh is calculated at RM2,665.28. As per the image below, customers are entitled to 200 units for the first block tariff every month. However, since the bill rendered was for electricity consumption of 93 days, TNB uses the “Faktor Prorata” of 3.10000 (calculated by dividing 93 days with 30 days). He was allocated 620 units (i.e. 200 x 3.10000) for the first lowest block tariff at the rate of RM 0.218, which amounts to RM 135.16 (i.e. 620 units x RM 0.218 = RM 135.16). The same “Faktor Prorata” multiplier of 3.10000 was used for each of the subsequent higher block tariffs. The 2,520 kWh that was charged at the highest rate of RM 0.571 was correctly calculated as 5,310 – 930 – 930 – 310 – 620 = 2,520.

ii) Amount of bill with prorate method

Tariff Block (per month)	Proration Block (Unit charged with proration method, kWh)	Tariff (RM)	Amount (RM)
200	620 (200 x 3.1)	0.218	135.16
100	310 (100 x 3.1)	0.334	103.54
300	930 (300 x 3.1)	0.516	479.88
300	930 (300 x 3.1)	0.546	507.78
> 900	2,520	0.571	1,438.92
Total usage: 5,310	5,310		2,665.28

The bill calculation using prorate method has been approved by the Energy Commission as the regulator and it has been proved to be has charged to the customers fairly.

From this calculation, deductions were made for the two percent discount that Mr. Tan was entitled to under the Economic Stimulus Package and the previous March and April estimated bills. Then, a service tax of six percent and 1.6 percent of the Renewable Energy fund (KWTBB) were added to obtain Mr Tan’s current charges of RM1,614.80. This amount, plus the RM537.10 arrears totalled to RM2,151.90 as the amount to be paid to TNB.

Due to the extended period of staying at home during MCO period, we foresee that some residential customers may consume more electricity than usual and this may result to higher payable amount when they receive their actual bills.

As a way to cushion the potential bill hike of the residential customers (Tariff A – Domestic) due to the increase in electricity consumption during MCO period, TNB has introduced an Easy Payment Plan (EPP) to provide an option for customers to pay electricity bills on staggered basis until 31st December 2020. The EPP together with the tiered discount of between two per cent to fifty per cent offered to residential customers for consumption from 1st April 2020 to 30th September 30th 2020 is offered to help cushion the impact of the Covid-19 pandemic on the rakyat. In addition, to ease the financial burden of residential customers, the interest on late payment (ILP) will be waived until 30 September 2020. No disconnection activities will be carried out until 31st July 2020 to support customers in adjusting to the new normal.

For customers who need further clarification, our customer service officers are ready to provide assistance. You may call TNB CareLine at 1 300 88 5454 or visit the nearest Kedai Tenaga. - MALAYMAIL