CONNECTED LOAD CHARGE (CLC)

Connected Load Charge is a mitigating tool to discourage consumers from over declaring their load requirement. Over declaration will lead to over plant up and waste of
resources and increase in reserve margin. Without CLC, other consumers have to also pay for the unnecessary higher cost of electricity due to wastage and this is unfair to
those who properly declare.

Other utility who does not have CLC penalty, recover their demand component or fix cost via imposing contract capacity charge through their tariff rate based on consumer
declaration.

Affected customers

All new medium voltage and high voltage consumers (consumers with supply voltage at 6.6kV and above) are subjected to CLC for a period of 6 years from the date the
supply was commissioned with CLC exemption for the first year only.

or any supply and/or load and/or voltage upgrade, the consumer will be levied new CLC based on the total maximum demand declared (i.e current maximum demand plus
additional maximum demand).

CLC calculation

CLC is applicable when the actual Maximum Demand (MD) recorded on any month is less than 75% of the declared maximum demand during the said period.

CLC is imposed based on the shortfall between the 75% of the declared maximum demand and maximum demand recorded in a month. CLC rate charges are RM8.50 per
kilowatt and subjected to prevailing changes from time to time.

Nevertheless, for the first 3 years, the CLC will be based on staggered percentage to assist consumer during the initial stage of their operation.
 The method in determining Reference Maximum Demand* for calculating CLC are as follows:

YEAR REFERENCE MAXIMUM DEMAND*

1 0% x 75% x Declared Maximum Demand(CLC exempted for the first year only)

2 50% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]

3 75% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]

4 100% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]

5 100% x 75% x [Declared MD or Highest Recorded MD, whichever is higher

6 100% x 75% x Declared MD or Highest Recorded MD, whichever is higher]

Note: CLC is applicable when MD recorded < Reference MD.
A penalty of RM8.50/kW will be charged for every kW shortfall between the Actual Maximum Demand used compared to the Reference Maximum Demand (RMD).
CLC is calculated monthly.
CLC penalty RM8.50 is well below the Maximum Demand rate.
Example of CLC calculation:

MAXIMUM DEMAND REFERENCE

ACTUAL MAXIMUM
YEAR DECLARED(ASSUME MAXIMUM CLC PENALTY(RM)
DEMAND(AMD)(KW)
10,000KW) DEMAND(RMD)

0% x 75% x 10,000kW
1 10,000kW 100kW Not Applicable
= 0kW

50% x 75% x No penalty. AMD >

2 10,000kW 5,000kW
10,000kW = 3,750kW RMD
 CLC = RM8.50 x (
75% x 75% x
3 10,000kW 5,000kW 5,625kW - 5,000kW ) =
10,000kW = 5,625kW
RM5,312.50

100% x 75% x No penalty. AMD >

4 10,000kW 7,500kW
10,000kW = 7,500kW RMD

100% x 75% x No penalty. AMD >

5 10,000kW 8,000kW
10,000kW = 7,500kW RMD

100% x 75% x No penalty. AMD >

6 10,000kW 8,000kW
10,000kW = 7,500kW RMD

Few activities could be carried out by customers that assist in reducing MD charges such as:

Practicing demand side management such as peak shift i.e. shifting their peak operation/consumption to off peak period as MD charges is not applicable during off-peak
period for customer with peak/off-peak tariff

Opting for any promotional scheme offered by TNB relating to MD such as Sunday Tariff Rider Scheme (STR).

Starts your motor/equipment in stages or during off-peak period