New electricity tariff structure offers transparent breakdown, says Fadillah

The Star

4 days ago

KUALA LUMPUR: The government's revised electricity tariff structure for Peninsular Malaysia now includes a detailed cost breakdown and new energy efficiency incentives for micro, small and medium enterprises (MSMEs), says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Energy Transition and Water Transformation Minister, said the new structure - announced by the Energy Commission (ST) on June 20 and implemented from July 1, 2025 - features a transparent itemisation of charges to help consumers better understand the cost components of electricity supply.
'For the first time, the electricity tariff structure clearly displays the energy charge, capacity charge, network charge and retail charge for each consumer category,' he told the Dewan Rakyat on Tuesday (July 29).
He said this marked a departure from the previous format, which only listed the energy charge and minimum charge.
The improved transparency is part of the government's broader effort to raise public awareness and encourage smarter energy use in line with the national energy transition agenda, he said.
'This is an early step towards educating Malaysians to become more energy-conscious consumers,' he added.
Fadillah also said that the tariff classification for non-domestic users will no longer be based on economic activity but rather on connection voltage levels.
'This ensures that non-domestic consumers are charged tariffs that reflect the true cost of supplying electricity, while eliminating discrimination based on sector,' he said.
The change, he explained, supports sustainability by offering a fair and equal platform for all non-domestic users, regardless of industry.
As part of efforts to promote energy efficiency, the government has introduced direct incentives for consumers, including MSMEs with monthly electricity usage of 200kWh or less.
'These targeted incentives are aimed at encouraging efficient energy use among the domestic group and small businesses, which in turn helps balance electricity demand and boost renewable energy generation,' said Fadillah.
In addition to these incentives, Fadillah also confirmed that the government has allocated RM40 million under the NUR@Petra programme (Nikmat Untuk Rakyat), aimed at helping households purchase energy-efficient appliances.
'The NUR@Petra programme currently offers rebates of up to RM400 for the purchase of 4- or 5-star energy-efficient air-conditioners and refrigerators,' he said, adding that the move is part of the broader push to reduce electricity consumption through smarter technology adoption.
He further clarified that the RM40 monthly electricity rebate, which remains targeted at B40 households, is no longer strictly tied to the e-Kasih database.
He said eligibility now also takes into account electricity consumption levels, particularly for households using 600kWh or less per month.
'This rebate system is now partly usage-based, ensuring that support reaches those who genuinely practise prudent energy use, not just those listed under a specific income category,' he said.
He stressed that good energy management would not only lower utility costs but also support the broader shift towards cleaner energy sources.
Additionally, he said the new tariff structure is designed to drive interest among non-domestic users in adopting renewable energy (RE) as a competitive alternative.
'With greater transparency in cost components, we hope more businesses will explore RE options as part of their corporate responsibility towards achieving net-zero carbon emissions by 2050,' he said.
Fadillah assured that the Energy Transition and Water Transformation Ministry, in collaboration with ST and Tenaga Nasional Berhad (TNB), is rolling out infographics and public engagement materials to ensure that users fully understand the changes.
Consumers may also contact TNB's careline for further clarification to avoid confusion or anxiety over the new tariff system, he added.