Electricity Tariff Retention in Peninsular Malaysia: Government Allocates RM5.96 Billion in Subsidies for January to June 2025
PUTRAJAYA, December 21, 2024 – The government has announced that the current electricity tariff rates, including rebates and surcharges under the Imbalance Cost Pass-Through (ICPT) mechanism, will remain unchanged for all electricity users in Peninsular Malaysia from January 1 to June 30, 2025. This decision, made on December 13, 2024, underscores the government’s commitment to safeguarding the welfare of the people by maintaining targeted electricity subsidies to protect domestic users.
For the first half of 2025, the government will allocate a total of RM2.388 billion to finance these subsidies. The Ministry of Energy Transition and Water Transformation emphasized that this targeted subsidy approach is a sustainable measure to manage the government’s financial commitments. By optimizing subsidy allocation, resources can be channeled toward other vital public initiatives, including infrastructure development, healthcare improvements, and support for the national education sector.
Additionally, on December 13, 2024, the government approved the average base electricity tariff rate for Tenaga Nasional Berhad (TNB) under the Fourth Regulatory Period (RP4) of the Incentive-Based Regulation (IBR) framework. This new rate will apply from January 1, 2025, to December 31, 2027.
To reflect actual electricity supply costs and maintain energy security, sustainability, and affordability, the Energy Commission is finalizing a new tariff schedule proposed for implementation on July 1, 2025. This adjustment involves a financial implication of RM3.57 billion, which will also be borne by the government.
The government remains steadfast in supporting low-income households through the RM40 Electricity Rebate Program, allocated RM55 million for 2025. This program targets households registered under the e-Kasih system nationwide. Eligible users can check their status via the official rebate website or by visiting nearby utility offices. Monthly electricity bills will also display the subsidies provided by the government.
The retention of electricity tariffs is expected to stabilize market prices and bolster industrial productivity. This initiative aligns with the government’s efforts to attract investments, create job opportunities, and stimulate the nation’s economic growth.
-AsiaNewsToday
