New electricity tariff ‘demonstrates reform' in energy sector, says Fahmi
KUALA LUMPUR, June 22 — The implementation of the new electricity tariff schedule starting July 1 is a clear reflection of the major reforms being undertaken by the government, particularly in the national energy sector, said Communications Minister Datuk Fahmi Fadzil.
Fahmi, who is also the Madani Government spokesperson, said the initiative aligns with the National Energy Transition Roadmap (NETR), which aims 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 Ministry of Energy Transition and Water Transformation (Petra), 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 today.
Also present was Information Department director-general Julina Johan.
On Friday, the ST announced that more than 23.6 million domestic users in Peninsular Malaysia will 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 December 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 Member of Parliament for Lembah Pantai, 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
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