No power tariff hike in Peninsular M'sia from Jan to June next year

There will be no increase in electricity tariffs for all users in Peninsular Malaysia with the implementation of the Imbalance Cost Pass-Through (ICPT) for the period from Jan 1 to June 30, 2025.

The Energy Transition and Water Transformation Ministry said it was a decision made by the government last Dec 13 to guarantee the well-being of the people by ensuring that domestic consumers continue to be protected through the implementation of targeted electricity subsidies.

"Overall, the amount of electricity subsidy from January to June 2025 that will be financed by the government will be as much as RM2,388 million.

"The ministry believes the implementation of targetted electricity subsidies is the best approach to reduce the government's subsidy commitment so the allocation can be channelled in other forms of assistance to the people," it said in a statement today.

It added that the initiative allows the government to continue to improve public infrastructure and healthcare as well as support the country's education sector.

On June 29, the ministry announced that the rebate of two sen per kilowatt hour (kWh) would be maintained for 6.9 million domestic consumers under 600 kWh, no change for 1.3 million consumers under 1,500 kWh, and a rebate of 10 sen/kWh for 85,000 consumers over 1,500 kWh.

The government also agreed with the setting of the average basic electricity tariff rate in the peninsula for Tenaga Nasional Bhd under the framework of Incentive Based Regulation (IBR) for the Fourth Regulatory period (RP4) starting from Jan 1 to Dec 31, 2027.

More competitive tariff

Accordingly, the government through the Energy Commission (ST) is finalising a proposed new tariff schedule that reflects the actual cost of electricity supply and is more competitive, while maintaining the balance of the energy trilemma (security, sustainability and affordability).

This new tariff schedule is proposed to be implemented on July 1, 2025, involving a financial implication estimated at RM3,570 million which will be funded by the government.

The ministry said it also remains committed to ensuring the welfare of the low-income group through the RM40 Electricity Rebate Programme for electricity users in the hardcore poor category, registered in the e-Kasih System, with an allocation of RM55 million.

"Eligible users can check their eligibility status on the website or visit the nearest utility store, or see the amount of electricity subsidy in their monthly electricity bill," it said.

- Bernama

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