Review of electricity tariffs for peninsula prompted by industry changes
Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said the current electricity tariff schedule in the peninsula has been in use since 2014.
He said the government has been using the Incentive-Based Regulation (IBR) framework to determine the base electricity tariff in the peninsula since 2014.
"Through the IBR mechanism, the average base tariff is reviewed every three years, including the profit margin of Tenaga Nasional Bhd, which is regulated by the government for the following three-year period.
"The tariff schedule review is necessary due to significant changes in the development of the electricity industry over the past 10 years," he said during the question and answer time in the Dewan Rakyat.
He was responding to a question from Lim Guan Eng (PH-Bagan), who asked about TNB's annual profits and the additional earnings it could gain following the 14.2 per cent electricity tariff increase for the commercial sector on July 1.
Lim had also asked whether the hike could be deferred as TNB's profits had already risen by over 70 per cent in 2024.
Akmal said the ministry and the Energy Commission had reviewed and restructured the peninsula's electricity tariff schedule to address mismatches in the cost structure of the existing schedule.
"This includes nine per cent fixed infrastructure costs and 91 per cent energy costs," he said.
It was previously reported that more than 23.6 million domestic users in the peninsula would enjoy fairer and more progressive electricity rates through the implementation of the new tariff schedule approved by the government.
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