KUALA LUMPUR (Dec 20): There will be no increase in electricity tariff for all users in Peninsular Malaysia from Jan 1 to June 30, 2025, the Ministry of Energy Transition and Water Transformation announced on Friday.
This is because the government is maintaining the current base electricity tariff for the period, and is not going to make changes to the current rate of rebate and surcharge on the tariff based on the imbalance cost pass-through mechanism.
In a statement, the ministry also said it will introduce a new tariff structure from July 2025 onwards, having agreed with the base tariff for the next three years under the Regulatory Period 4 (RP4) (2025-2027).
Under the RP3 2022-2024, base tariff is set at 39.95 sen/kWh. This took into account projected coal prices of US$79 (RM356) per tonne, with floating gas price of RM33 per million British thermal units (mmbtu). The latest regulatory period decision, which typically adjusts the fuel costs assumptions, has not been revealed.
Domestic or household consumers are currently given two sen/kWh rebate for using below 600kWh in the month — or monthly bills below RM220.
No surcharge is given to those consuming between 601kWh and 1,500kWh, while those exceeding this will be imposed a surcharge of 10 sen/kWh for the entire electricity consumption that month.
Meanwhile, for commercial and industrial users, a surcharge is imposed at 16 sen/kWh for medium- and high-voltage users, and a surcharge of 2.7 sen/kWh for low-voltage users, those in selected agricultural sectors, and water and sewerage operators.
The upcoming tariff structure due July is being finalised and will “reflect real costs of electricity supply, and be more competitive while maintaining the stability of the energy trilemma of security, sustainability and affordability”, the statement read.
To maintain the electricity tariffs in the first half of 2025, the government is expected to provide subsidies of RM2.39 billion. Meanwhile, the new tariff structure will result in RM3.57 billion of financial implication to the government, the ministry said, without elaborating further.
“The government hopes that maintaining the electricity tariff from Jan 1 to June 30, 2025, will encourage industry players to stabilise market prices and support efforts to promote investment in Malaysia,” the statement said.