New electricity tariff reflects major reform in national energy sector, says Fahmi
The Communications Minister, who is also the Madani government spokesperson, said the initiative aligned with the National Energy Transition Roadmap (NETR), which aimed to increase the use of renewable energy (RE) and reduce carbon emissions by 2050.
"Under the new tariff schedule, 85 per cent of domestic consumers or account holders are expected to enjoy the same, or even lower, electricity rates starting July 1, 2025, provided their monthly usage does not exceed 1,000 kilowatt hours,' he said.
"This is one of the key reforms being advanced in a coordinated manner by the government, together with the Energy Transition and Water Transformation Ministry, the Energy Commission (ST) and Tenaga Nasional Berhad. It demonstrates that efforts to implement renewal or reform can still deliver tangible benefits to the people,' he said.
Fahmi said this to reporters at the Federal Territories of Kuala Lumpur and Putrajaya's Kita Madani Carnival at IWK Eco Park, Pantai Dalam, here on Sunday (June 22). Also present was Information Department director-general Julina Johan.
On Friday (June 20), the ST announced that more than 23.6 million domestic users in Peninsular Malaysia would benefit from fairer and more progressive electricity rates due to the newly approved electricity tariff schedule approved by the government.
ST, in a statement, said that this tariff determination will take effect from July 1, 2025, to Dec 31, 2027, under the Incentive-Based Regulation (IBR) framework, in line with the provisions of Section 26, Electricity Supply Act 1990.
It said that the electricity tariff changes for the Regulatory Period 4 (RP4) involve the restructuring of the following three components, namely the average base tariff rate; the new tariff schedule; and the fuel cost adjustment mechanism.
The Average Base Tariff Rate for the RP4 period has been set at 45.40 sen/kWh, slightly lower than the 45.62 sen/kWh approved in December 2024 - reflecting an overall reduction of up to 19 per cent in the average electricity tariff compared with RP3.
Earlier, Fahmi, who is also the Lembah Pantai MP, officiated the Kita Madani Carnival, which aims to bring the community closer to government services through a casual, informative programme that highlights current issues, policies, and initiatives in line with the Malaysia Madani concept.
The programme, among other things, featured Rahmah Madani Sale and Agro Madani sale, sports competitions for children, as well as exhibitions involving 21 government agencies, including counters for traffic summons payments and driving licence renewals.- Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Power sector going through surge in demand
PETALING JAYA: Listed power infrastructure players are set to gain from the strong electricity demand from energy-intensive industries such as data centres, according to Hong Leong Investment Bank (HLIB) Research. In addition, the demand for power infrastructure is set to trend higher underpinned by Tenaga Nasional Bhd 's (TNB) efforts to enhance grid resiliency and expansion of national power supply. 'Policy tailwinds, such as Malaysian Investment Development Authority's cable import restrictions and TNB's preference for local contractors, create barriers to entry for foreign competitors, further reinforcing the market position of domestic players,' the research house noted in a report yesterday. Given the robust project pipeline and rising infrastructure requirements, the sector has not yet reached its cyclical peak, according to the research house. It noted that the power sector is experiencing a surge, with peak power demand reaching a record high of 21,049MW on May 28, 2025 – a robust 10.4% year-on-year (y-o-y) increase. 'This growth significantly outpaces TNB's gross domestic product-linked demand projection of 3.5% to 4.5% and surpasses the Energy Commission's 2020 long-term forecast, which projected peak demand of 19.3MW only by 2025,' HLIB Research said. The rise is driven by the combination of organic demand and load acceleration from data centres, with the latter's utilisation surging to 485MW in March 2025 – 3.2 times increase from 148MW a year earlier. 'In response, the Energy Commission has initiated tenders for new and existing gas-fired power capacity slated for commissioning over 2025 to 2029 to maintain a healthy reserve margin. 'At the same time, renewable energy (RE) deployment remains a key policy focus, with national targets set at 31% RE capacity by 2025 and 40% by 2035. 'Amid this backdrop of rising demand and a strong pipeline of new power supply, we see a compelling multi-year investment opportunity in the domestic power infrastructure space,' HLIB Research said. On TNB, the research house said investments in transmission and distribution (T&D) continued to form a significant portion of its capital expenditure (capex) to maintain grid resiliency amid rising demand. With 34% of its planned financial year 2025 (FY25) capex already utilised in the first quarter of 2025 (1Q25), TNB is expected to incur up to RM12bil capex this year for T&D-related initiatives. 'Over the Regulatory Period 4 (RP4) period), we estimate it will invest RM3bil to RM3.5bil annually from its base capex into grid infrastructure, translating into a RM6.7bil to RM7.8bil opportunity within the transmission substation business for mechanical and engineering players. 'Notably, this estimate excludes consumer-side substations, which are also required to complete connections to end users,' HLIB Research said. Looking ahead, the research house stated that TNB's RM90bil grid investment plan implied an additional RM47bil could be deployed under RP5 (2028 to 2030), exceeding RP4's RM42.8bil and pointing toward sustained momentum in power infrastructure rollout. As of 1Q25, TNB had 2.9GW of electricity supply agreement (ESA) under construction, with an additional 0.7GW signed and is set for construction commencement. 'This is higher versus the 1.3GW ESA capacity delivered in 2024 alone, signaling a strong acceleration in infrastructure pipeline, which is likely to materialise over the next 12 months. 'Following our recent engagement with TNB, the group reaffirmed that ESA enquiries remain robust, with no cancellations to date,' HLIB Research said. It is 'overweight' on the power infrastructure sector with top picks being MN Holdings Bhd with a 'buy' call and target price (TP) of RM1.88 and Southern Cable Group Bhd at 'buy' and TP: RM1.90, both of which will be key beneficiaries of grid expansion. The research house also favoured SMRT Holdings Bhd ('buy', TP: RM2.19) for its strategic involvement in the digitalisation of Malaysia's distribution substation.
Malaysiakini
5 hours ago
- Malaysiakini
'From the river to the sea'
Government spokesperson Fahmi Fadzil quoted the famous pro-Palestine phrase 'From the river to the sea, Palestine will be free' earlier today. He was being prodded by the media about Nick Adams - a pro-Israel Australian-American influencer - being nominated by US President Donald Trump as the country's next ambassador to Malaysia. Fahmi, who is the communications minister, initially played coy...
The Star
6 hours ago
- The Star
Asean news headlines as at 10pm on Tuesday (July 15)
Malaysia Freedom of Information Bill expected to be tabled by year-end, says Anwar Teen hands over mother's jewellery worth RM140,000 to scammers Cabinet yet to receive official memo on US ambassador pick, says Fahmi Maori community can be a model for Orang Asli tourism, socio-economic development, says Zahid Fighting corruption boosts economic growth, ensures national harmony, says Anwar Integrated Asean supply chain key to tackling US trade policies, says Liew Govt to review Judicial Appointments Commission Act, says Azalina KL ranks 12th globally in QS Best Student Cities 2026 Border control agency tightening security at transit zones to prevent illegal entry Anwar expected to announce judicial appointments July 16 Malaysia to host Smart City Expo KL 2025 in September Australian Foreign Minister Penny Wong honours Sabah, reaffirms commitment to Asean Malaysia's economic model must be readjusted to withstand external pressures, says HR minister MACC nabs two Bangladeshis linked to 'counter setting' syndicate Rock legends Deep Purple are back in Kuala Lumpur after 15 years for a super concert at Mega Star Arena on Nov 23 University stabbing suspect remanded for four days Two Chinese nationals killed in crash on NSE near Tapah MAHB enhances KLIA T1 with RM30mil upgrades to improve passenger experience In the heart of Sabah, Danum Valley is a living jungle like no other No evidence of AI chip smuggling found, says Zafrul Japanese multinational to invest RM500mil in mall expansion in Seremban 2 Tourists can plan their journey around KL with this handy guidebook Loke: PM to announce new Chief Justice after obtaining Malay Rulers' consent Mara to sponsor 100 students bound for NZ varsities S'wak exploring strategic tie-ups in utilities, space industry in China Bali ferry tragedy: Wisma Putra confirms M'sian's death, says all consular processes concluded 'Superman' Syed Saddiq attends birthday party of Bella Astillah's children Singapore Singapore intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun The Violinist, Singapore's first animated historical film, set for August 2026 release Singapore public healthcare institutions to record all Kpod cases, confiscate vapes Singapore researchers get S$25mil grant to screen, treat lung cancer in Asian patients Actor-artist Chen Xi marries Japanese girlfriend in Singapore Singaporean actress Sheila Sim takes hair-cutting course after giving daughter 'awful' haircut S$10mil Toto results to be announced on July 17; no winners in past three draws Thailand Supreme Court hears fourth session on Thaksin's hospitalisation during sentence Thailand delays tourist entry fee till 2026 Golf, the femme fatale embroiled in sex scandal with monks, faces arrest over embezzlement of temple funds Suspended Thai PM asks court for more time to respond to ethics case Thailand unexpectedly delays naming new central bank chief Thai police submit sedition case against Hun Sen to prosecutors Thailand's changing cannabis rules leave farmers in a tough spot French President Emmanuel Macron, right welcoming Indonesia's President Prabowo Subianto at the Elysee Palace in Paris n July 14. - AP Photo Indonesia Indonesia rescues 11 who swam for hours to survive boat capsize Search extended for 17 missing victims in Bali Strait ferry tragedy Indonesian diva and pop princess Bunga Citra Lestari to jive stage with Jaclyn Victor and violinist Dennis Lau for 'love concert' in KL Indonesia trains migrants workers as cultural ambassadors abroad Philippines Magnitude 5.8 earthquake strikes Luzon, Philippines Cops raid online lending company in Pasig City, nab 168 employees Reforms could help transform Philippines into middle-class society by 2040: World Bank Search for missing Philippine cockfighting enthusiasts in Taal Lake to take six months: Remula Vietnam Vietnam's capital to help residents switch to electric vehicles SpaceX expected to launch Starlink services in Vietnam from fourth quarter German customs officials find 1,500 tarantulas hidden in biscuit packaging from Vietnam Vietnam's former top health official prosecuted in dual bribery scandals Cambodia Archaeologists restoring ninth brick tower of Bakong temple in Cambodia's famed Angkor park Defence minister demands public apology for assault on Cambodian soldier at Ta Mone Thom Cambodian ministries going digital with e-invoice platform Myanmar Four consecutive earthquakes strike within hours in Myanmar Myanmar welcomes over 500,000 foreign tourists in H1 2025 Laos Laos, Cambodia, Myanmar to release 100 million fingerlings into rivers Laos moves toward integrating digital ID systems Brunei Brunei Sultan announces landmark reforms and digital transformation on 79th birthday Brunei's lion dance troupe to 'roar' at world championships China is experiencing a relentless heatwave, with temperatures forecast to exceed 40 deg C in parts of the country as residents prepare for the summer season to reach its peak on July 20. - AFP Aseanplus Australia sidesteps US tensions to seek closer China trade ties Hong Kong opens probe into AI-generated porn scandal at university China's Xi vows greater support for Russia as he meets Lavrov Pilot groups reject claims of human error in Air India crash Japan man sells Ferrari to fund shelter for 'taxing' dogs, repay pet that saved his life Heatwave sweeping across China could be unprecedented Parent of top student, teacher break into South Korean school to steal exam papers Typhoon Nari makes landfall over Japan's Hokkaido Teacher, teen arrested at Hong Kong airport in 'Ice', ketamine drug cases China steps in as US pulls back from diplomacy, report says Elegant Fine Caviar: Malaysian-owned caviar from a sturgeon farm in China World's oldest marathon runner dies aged 114 in road accident Fringe party vows to put 'Japan First' to chip away at LDP rule China's Q2 GDP growth tops forecast even as US tariff risks mount Squid Game's tragic couple speak out on their harrowing on-screen relationship Tech takes centre stage as Chinese students weigh up major choices Fringe party vows to put 'Japan First' to chip away at LDP rule Astronauts from India, Poland, Hungary head for splashdown with NASA veteran Japan's ruling coalition seen losing upper house majority, polls show Australia looks to scrap surcharges on most card payments Nvidia's CEO says it has US approval to sell its H20 AI computer chips in China Lego doubling down on China market Japan launches government body to address concerns over foreigners Bangladesh struggles to contain the fallout of an uprising that toppled its leader last year 'Butter': the foodie feminist bestseller skewering sexism in Japan Japan ruling party support plunges ahead of national election in NHK poll HK actor Ray Lui's wife flaunts RM216k handbag while vacationing with husband in Europe Asian markets mixed as China's economy meets forecasts
