Govt widens electricity bill subsidy to 800kWh due to hot weather, haze

The government has expanded electricity bill protection to households consuming up to 800 kilowatt-hours (kWh) a month following complaints over sharp increases in power bills.

Prime Minister Anwar Ibrahim said the threshold, raised from 600kWh, would apply to electricity consumed from September until Dec 31.

Eligible domestic users will be exempted from the Automatic Fuel Adjustment (AFA), retail charges, and sales and service tax.

In a statement, Anwar said the recent haze and hotter weather had pushed some households to use electricity beyond 600kWh, exposing them to the AFA and causing unusually high bills.

"This step is being taken as an immediate measure to address the pressures currently faced by the people," he added.

The AFA adjusts bills monthly according to fuel prices and foreign exchange rates. September’s surcharge stands at 3.67 sen per kWh as fuel costs remain above baseline levels.

Previously, in his Merdeka Day address, the prime minister said 85 percent of households benefited from the AFA system and suggested that high consumption was associated with wealthier users.

While maintaining that targeted subsidies would continue, Anwar said the government would monitor fuel costs and energy market conditions to balance affordability, supply security, and the energy sector’s sustainability.

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