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Electricity tariff hike will not burden businesses, 85% of households to remain subsidised: PM | Scoop

23102023 - Tenaga Nasional Berhad TNB Pencawang Elektrik Electricity - ABDUL RAZAK LATIF 006 — Prime Minister Datuk Seri Anwar Ibrahim has assured that any increase in electricity tariffs will not burden the business community. - Scoop file pic, February 3, 2025

Electricity tariff hike will not burden businesses, 85% of households to remain subsidised: PM

Datuk Seri Anwar Ibrahim reaffirmed the government’s commitment to protecting consumers and ensuring a balanced approach to energy costs

Updated 4 February, 2025

3 February, 2025

4:29 PM MYT

KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim has assured that any increase in electricity tariffs will not burden the business community and that 85 per cent of households will continue to receive subsidies.

Anwar, who is also the Finance Minister, stated that any increase in electricity tariffs in the second half of 2025 will not be burdensome or detrimental to the business community.

Speaking at the Chinese New Year celebration organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) today, he also emphasised that low-income households will remain unaffected by the scheduled tariff review during that period.

Currently, the government provides electricity subsidies to over 85% of households.

The basic electricity tariff in Malaysia is set by the Energy Commission under the Incentive-Based Regulation (IBR) framework and is reviewed every three years.

In addition to the basic tariff, there is the Imbalance Cost Pass-Through (ICPT) mechanism, which is reviewed every six months.

The ICPT adjusts electricity rates based on actual changes in fuel costs.

The next tariff review is scheduled for July 2025. – February 3, 2025

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