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New Straits Times
2 days ago
- Business
- New Straits Times
Review of electricity tariffs for peninsula prompted by industry changes
KUALA LUMPUR: The review of the electricity tariff schedule in Peninsular Malaysia was carried out due to significant changes in the development of the country's electricity industry. 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.
New Straits Times
29-07-2025
- Business
- New Straits Times
Fadillah: Revised electricity tariff has minimal consumer impact
KUALA LUMPUR: The newly revised electricity tariff structure for Peninsular Malaysia now includes clearer cost breakdowns, reflecting the true cost of power supply, said Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof. He said under the new structure, the details of Energy Charges, Capacity Charges, Network Charges, and Retail Charges for each user category are listed — unlike the previous structure, which only featured Energy Charges and a Minimum Charge component. Fadillah explained that the revised tariff ensures fair and equitable cost distribution across all users, while causing minimal changes for domestic consumers. "Previously, we used the Imbalance Cost Pass-Through (ICPT) mechanism, based on fuel price evaluations every six months. Each half-year, we'd calculate the average increase in gas, coal, and other factors. That component was reviewed every six months. "But now, we've moved to the Automatic Fuel Adjustment (AFA), which is evaluated monthly. So, every month we will know the rate, and it is projected forward," he said during Minister's Question Time in the Dewan Rakyat today, in response to a supplementary question from Datuk Abdul Khalib Abdullah (PN-Rompin). Fadillah was also responding to a question from Dr Mohammed Taufiq Johari (PH–Sungai Petani), who asked about the objective of the new tariff schedule in achieving energy transition goals and long-term sustainability, as well as the government's response to claims that the new tariffs are burdensome and how it plans to address public confusion and concern over the policy. Tenaga Nasional Bhd (TNB) had previously announced that under the new structure announced by the Energy Commission (ST), consumers can now view a detailed breakdown of every sen spent on electricity via a more comprehensive bill format. The new structure, approved by the government under the Incentive-Based Regulation (IBR) mechanism, is in line with Section 26 of the Electricity Supply Act 1990. According to the official myTNB website, bills will now display a breakdown of three key components: Generation Charges, Network Charges, and Retail Charges. This aims to improve transparency and user understanding of electricity billing. Generation Charges include the cost of fuel, generation capacity, and global fuel price adjustments, while Network Charges cover transmission operations and system maintenance and Retail Charges include customer service, billing, and account management costs. Fadillah elaborated that domestic users consuming below 600 kilowatt-hours (kWh) are exempt from the AFA. However, those using more than 600kWh will be charged based on the cost of energy sources such as gas and coal. "Because fuel and gas prices have dropped, for August 1 to 31, a rebate of 1.545 sen per kilowatt-hour will be applied due to the price decrease. "This is now done monthly — not every six months — meaning the values are more accurate and transparent according to current market conditions," he added. Fadillah noted that the revised structure is more transparent and can help educate consumers about the various cost components involved in electricity supply. "This is an early step to raise awareness and educate the public to become energy-smart consumers, in line with the national energy transition agenda," he said. He also explained that tariff rates in the new schedule are no longer based on economic activity but on voltage connection levels. This aims to ensure non-domestic users are charged based on the actual cost of electricity supply and to prevent discrimination based on business sector. "This also supports sustainability by creating a level playing field for participation among non-domestic users. "Transparency in cost components may also encourage non-domestic users to explore renewable energy sources as more competitive alternatives, while contributing to corporate social responsibility in achieving net-zero carbon emissions by 2050," he said. To ensure the public understands the new tariff structure, Fadillah said his ministry, together with the Energy Commission (ST) and TNB, have released a series of infographics to educate users on the newly introduced components — energy charge, capacity charge, network charge, retail charge — and the AFA component, which replaces the previous ICPT mechanism.
Barnama
06-07-2025
- Business
- Barnama
SST And New Electricity Tariffs: Relief Measures To Ease Transition
Despite early concerns over rising living costs, the rollout includes various measures designed to cushion the impact, especially for households and small businesses. PUTRAJAYA, July 6 (Bernama) -- As Malaysia enters the second half of 2025, the government's fiscal recalibration through an expanded Sales and Service Tax (SST) and revised electricity tariffs mark a strategic move to strengthen national finances while prioritising the welfare of the rakyat. For the average Malaysian, the mood is gradually shifting from anxiety to cautious optimism, as support mechanisms are in place to help those most in need. From tax exemptions on personal care services such as haircuts, facials and manicures, to anticipated cash assistance and a more progressive electricity tariff system where higher usage brackets are charged more, the government appears to be listening and responding to public sentiment. He also raised the SST registration threshold for leasing and financial services from RM500,000 to RM1 million, offering relief to smaller businesses. Meanwhile, services such as haircuts, facials and manicures have been excluded from the expanded SST, a modest but welcome move that helps maintain the affordability of everyday self-care. The government has expanded the SST to cover more services and selected imported goods as part of efforts to boost revenue. However, following engagement sessions and public feedback, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim recently announced tax exemptions for four imported fruits commonly found on Malaysian dining tables - apples, oranges, mandarin oranges and dates. 'This move helps maintain the affordability of key food items and supports household purchasing power,' said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. Another key policy change taking effect this month is the revised electricity tariff, which affects more than 23.6 million domestic users in Peninsular Malaysia. The new rates, effective from July 1, 2025 until Dec 31, 2027, fall under the Incentive-Based Regulation (IBR) framework under Section 26 of the Electricity Supply Act 1990. The Energy Commission has set the average base tariff rate at 45.40 sen per kilowatt-hour, slightly lower than the 45.62 sen approved in December 2024. This adjustment is expected to reduce overall electricity costs while promoting energy-saving habits, particularly during off-peak hours. External challenges remain Despite domestic reforms, global uncertainties continue to weigh on Malaysia's economic outlook. Mohd Afzanizam warned that the upcoming expiry of the United States' temporary suspension of reciprocal tariffs on July 9 could increase pressure on Malaysian exports if Washington reimposes steep duties. However, the administration of US President Donald Trump has signalled the possibility of extending the suspension, a move that could offer short-term relief to Malaysian exporters, particularly in the electrical and electronics, palm oil, rubber and machinery sectors. Economists say such an extension would reflect a more measured US trade stance and could help stabilise global market sentiment, which is a much-needed breather for emerging economies navigating inflation, currency volatility and geopolitical risks. At the same time, ongoing tensions in the Middle East continue to fuel oil price fluctuations, adding pressure to Malaysia's fuel subsidy rationalisation efforts. Global price volatility could increase consumer costs and complicate the implementation of subsidy reforms. Relief measures and stronger fiscal footing While the government's fiscal reforms are geared toward long-term stability, public sentiment remains sensitive to immediate cost-of-living issues. Uncertainty still lingers over the implementation of RON95 fuel subsidy rationalisation and the full impact of SST and electricity adjustments on consumer behaviour. Nevertheless, there are signs of relief on the horizon. Mohd Afzanizam noted that there may be room for monetary easing, including a potential 25 basis points cut in the overnight policy rate (OPR) as early as this month (July 9). In a separate move, Bank Negara Malaysia's decision in May to reduce the statutory reserve requirement by 100 basis points had already injected about RM19 billion into the banking system, providing liquidity to support economic activity. 'On the fiscal front, the government's disciplined approach appears to be yielding results. The fiscal deficit narrowed to RM22 billion or 4.5 per cent of gross domestic product in the first quarter of 2025, down from RM26 billion or 5.7 per cent in the same period last year. 'Savings from the diesel subsidy rationalisation and SST reforms introduced in 2024 have opened up fiscal space, enabling the government to increase targeted assistance. The combined allocation for Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah has been raised to RM13 billion this year from RM10 billion in 2024. 'This careful balancing act is supporting investor confidence and helping to preserve Malaysia's sovereign credit ratings,' he said. International rating agencies like Moody's, S&P, and Fitch are expected to maintain Malaysia's current sovereign ratings, a crucial factor in attracting long-term foreign investment. As Malaysians adjust to this new fiscal environment, the coming months will test not only household resilience but also the government's ability to sustain reforms while protecting the wellbeing of the rakyat. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
New Straits Times
01-07-2025
- Business
- New Straits Times
Itemised electricity bills to aid consumers understand energy use
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) customers can now scrutinise their electricity usage with a new and more detailed bill format following the implementation of a new electricity tariff structure recently announced by the Energy Commission. The government approved the new structure under the Incentive-Based Regulation (IBR) mechanism under Section 26 of the Electricity Supply Act 1990. According to the official myTNB website, customers will receive bills that include a breakdown of three main components: Generation Charge, Network Charge, and Retail Charge. This approach aims to enhance transparency and help users better understand the structure of their electricity bills. "The Generation Charge covers fuel costs, generation capacity, and global fuel price adjustments. The Network Charge involves operational costs for transmission and supply system maintenance, while the Retail Charge includes customer service, billing, and account management costs," the website said. This more detailed billing format is designed to enhance transparency and enable consumers to understand the structure of their electricity charges clearly. "This information allows TNB customers to analyse every sen spent and make smarter daily energy management decisions," the website added. In July, customers will receive a transitional bill reflecting two sets of usage charges for different periods: up to June 30, 2025 (calculated under the old tariff) and from July 1, 2025 (based on the new tariff structure). "The July 2025 transitional bill will be available within 24 hours via the myTNB app and portal, while printed bills will be delivered within seven working days from the meter reading date," the website said. To ensure transparency and clarity for customers, TNB will distribute a meter reader verification slip as proof that a reading has been conducted. Beginning August, customers will receive electricity bills that provide a detailed breakdown of charges according to the new structure. Additionally, to help users adapt to the changes, TNB has provided an online Electricity Bill Calculator on its official myTNB website, allowing customers to estimate their bills based on usage and the new tariff rates. For more information, visit the official portal at
Daily Express
01-07-2025
- Business
- Daily Express
New detailed TNB electricity bills help consumers track energy usage
Published on: Tuesday, July 01, 2025 Published on: Tue, Jul 01, 2025 By: Bernama Text Size: TNB has also introduced an online Electricity Bill Calculator on its website, enabling customers to estimate costs under the new structure Kuala Lumpur: Tenaga Nasional Berhad (TNB) customers can now access a more detailed breakdown of their electricity bills following the implementation of a new tariff structure approved by the Energy Commission. The updated billing format aims to improve transparency and help consumers understand their energy consumption patterns. Under the new system, bills will display three key components: Generation Charge, Network Charge, and Retail Charge. According to TNB's official website, 'The Generation Charge covers fuel costs, generation capacity, and global fuel price adjustments. The Network Charge involves operational costs for transmission and supply system maintenance, while the Retail Charge includes customer service, billing, and account management costs.' This change is part of the Incentive-Based Regulation (IBR) mechanism under Section 26 of the Electricity Supply Act 1990. The detailed breakdown allows customers to track spending more accurately and make informed decisions about energy use. For July 2025, customers will receive a transitional bill reflecting two different tariff periods: usage before June 30 (old rates) and from July 1 onwards (new rates). 'The July 2025 transitional bill will be available within 24 hours via the myTNB app and portal, while printed bills will be delivered within seven working days,' TNB stated. To assist users, TNB has also introduced an online Electricity Bill Calculator on its website, enabling customers to estimate costs under the new structure. For further details, visit or contact TNB CareLine at 1300-88-5454. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
