TNB 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*

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 CLC
Year Declared(assume Maximum
Demand(AMD)(kW) Penalty(RM)
10,000kW) Demand(RMD)
0% x 75% x
1 10,000kW 100kW Not Applicable
10,000kW = 0kW
50% x 75% x
No penalty.
2 10,000kW 10,000kW = 5,000kW
AMD > RMD
3,750kW
CLC = RM8.50 x
75% x 75% x
( 5,625kW -
3 10,000kW 10,000kW = 5,000kW
5,000kW ) =
5,625kW
RM5,312.50
100% x 75% x
No penalty.
4 10,000kW 10,000kW = 7,500kW
AMD > RMD
7,500kW
100% x 75% x
No penalty.
5 10,000kW 10,000kW = 8,000kW
AMD > RMD
7,500kW
100% x 75% x
No penalty.
6 10,000kW 10,000kW = 8,000kW
AMD > RMD
7,500kW

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