Latest news with #MinistryofEnergyTransitionandWaterTransformation
The Sun
2 days ago
- Business
- The Sun
New electricity tariff mechanism boosts transparency in Malaysia
KUALA LUMPUR: The Automatic Fuel Adjustment (AFA), the new adjustment mechanism for electricity tariffs in Peninsular Malaysia, is aimed at ensuring tariff reviews are more transparent and in line with the global fuel market reality, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also the Energy Transition and Water Transformation Minister, said that through this new mechanism, electricity tariffs will be adjusted monthly compared to only every six months under the Imbalance Cost Pass-Through (ICPT) system. 'For domestic users consuming below 600 kilowatt-hours (kWh) per month, they are exempted from the AFA, while those consuming more than 600 kWh will be charged for the energy resources, whether gas or coal. 'For August, due to the drop in fuel costs from Aug 1 to 31, a rebate of 1.545 sen per kWh will be given for the power supply. (The review) is done monthly -- no longer every six months -- which means it is more accurate and transparent based on real-time,' he said during the Minister's Question Time session in the Dewan Rakyat today. He was responding to a supplementary question from Datuk Abdul Khalib Abdullah (PN-Rompin) who asked whether the government plans to consider a more flexible and transparent tariff review in the future. Fadillah said the latest tariff review also involves a change in approach from customer categorisation based on economic sectors to by voltage usage. Therefore, he said, the government encourages those who consume higher amounts of energy to switch to renewable energy, including through solar photovoltaic installation, aimed at helping them save costs and reduce overall energy consumption. Answering Dr Mohammed Taufiq Johari's (PH-Sungai Petani) query regarding the objectives of the new electricity tariff schedule in achieving the energy transition agenda and long-term sustainability, Fadillah said it is an improvement to the previous structure based on four main principles. These include transparent tariff setting, tariff structure that reflects actual supply costs, fair and equitable cost distribution to all consumers, and minimal impact on domestic users in terms of bill variance. 'This new structure includes energy charges, capacity charges, network charges, and retail charges for each user category compared to the old structure which only had energy charge and minimum charge components. 'In this regard, the new structure is more transparent and exposes users to the costs that must be paid to obtain electricity supply,' he said. On June 20, the Ministry of Energy Transition and Water Transformation, through the Energy Commission, announced a revised electricity tariff schedule for Peninsular Malaysia effective from July 1, 2025. - Bernama
The Sun
3 days ago
- Business
- The Sun
Efficient energy use in government buildings cuts costs
KUALA LUMPUR: Efficient energy use in government buildings can significantly lower utility costs and support Malaysia's sustainable energy transition, according to the Ministry of Energy Transition and Water Transformation (PETRA). The ministry highlighted this during a recent seminar aimed at promoting energy-saving practices among civil servants. The seminar, part of the Malaysia Energy Literacy Programme (MELP), focused on no-cost energy efficiency measures outlined in a directive issued by the Chief Secretary to the Government last April. Deputy Minister Akmal Nasrullah Mohd Nasir noted that government buildings, including offices, schools, and hospitals, are major energy consumers, with monthly electricity bills reaching RM260 million. 'Implementing no-cost energy efficiency measures could save the government three to five per cent in utility costs,' he said. Simple steps like setting air conditioning to at least 24°C and switching off unused lights and appliances were emphasised as effective, low-effort solutions. PETRA stated that such initiatives align with Malaysia MADANI's sustainability principles. The seminar saw participation from 150 representatives across 49 ministries and agencies, fostering collaboration on energy conservation. - Bernama
The Sun
7 days ago
- Business
- The Sun
Govt waives KWTBB charge from Aug 1 to boost renewable energy
PUTRAJAYA: The government will exempt the 1.6 percent Renewable Energy Fund (KWTBB) charge on electricity tariffs under renewable energy programmes effective Aug 1, the Ministry of Energy Transition and Water Transformation (PETRA) announced. The exemption covers the Green Electricity Tariff (GET) initiative, Corporate Renewable Energy Supply Scheme (CRESS) and Community Renewable Energy Aggregation Mechanism (CREAM). PETRA stated that the measure aligns with the government's goal to accelerate the development and integration of renewable energy into the national electricity supply. 'With this exemption and related enhancements, PETRA hopes to incentivise users, particularly corporates and industries, to continue supporting the country's energy transition agenda towards achieving a 70 percent renewable energy mix in electricity supply by 2050,' the statement read. PETRA added that the move is also expected to spur more progressive and positive growth in the renewable energy industry. PETRA said the 1.6 percent charge on electricity tariffs, introduced in 2011, was established to fund the growth of renewable energy in Malaysia through the Feed-in Tariff (FiT) mechanism implemented by the Sustainable Energy Development Authority (SEDA) Malaysia. 'Since the introduction of the FiT mechanism, the distributed renewable energy capacity in the national power supply system, particularly from solar sources, has grown significantly, from just 5 megawatts (MW) in 2011 to 5,100 MW,' the ministry said. FiT has also boosted electricity generation from biogas, biomass, and small hydropower sources, which now collectively contribute 855 MW to the national supply, PETRA added. It said that following the implementation of the new electricity tariff structure on July 1, the government reviewed existing renewable energy programmes and resolved to further promote the adoption of renewable energy among electricity users. - Bernama
The Sun
23-07-2025
- Business
- The Sun
Malaysia ensures welfare protection amid fuel price fluctuations
KUALA LUMPUR: The government has assured that the welfare and well-being of the people will continue to be protected and will not be directly impacted by any sudden changes in electricity bills resulting from fluctuations in fuel prices. Deputy Prime Minister Datuk Seri Fadillah Yusof said this is because the Ministry of Energy Transition and Water Transformation (PETRA) has set a threshold that requires the minister's approval for any changes to the Automatic Fuel Adjustment (AFA) rate if the basic energy charge and projected energy costs for the coming month rise by more than 10 per cent compared to the current month. 'This is a proactive measure by the government to ensure continued protection for electricity consumers,' he said during a question-and-answer session at the Dewan Rakyat today. He was responding to a question from Datuk Seri Takiyuddin Hassan (PN-Kota Bharu), who sought clarification on how the new Tenaga Nasional Berhad (TNB) electricity billing structure would ensure cost fairness, promote energy efficiency, and maintain targeted subsidies for the B40 and M40 groups. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said the Cabinet had approved the implementation of the AFA mechanism on June 11, replacing the Imbalance Cost Pass-Through (ICPT) mechanism. Under the new system, fuel cost adjustments will be made monthly instead of every six months. Explaining further, he said the government is actively encouraging consumers to adopt energy-efficient systems and renewable energy to help reduce the nation's overall energy consumption. To ease the impact of electricity bills while promoting energy efficiency, Fadillah said the government has introduced energy efficiency incentives. These incentives are provided directly to domestic consumers with electricity usage of 1,000 kilowatt hours (kWh) or less, as well as to micro, small and medium enterprises (MSMEs) consuming 200 kWh or less. 'This incentive is designed to encourage the target group to practice smarter energy management, while ensuring that MSME businesses do not need to raise the prices of goods and services due to the new tariff rate. 'In addition, domestic consumers with electricity usage of 600 kWh and below will be exempted from paying retail charges. This is part of the government's effort to ensure that this group continues to be protected and is not burdened by the implementation of the new schedule,' he said. Fadillah added that, with the incentives and assistance offered alongside the new electricity tariff structure, the government expects minimal impact on electricity bills for domestic users and MSMEs. He noted that 85 per cent of domestic consumers will not be affected and will continue to be protected, in line with the aspirations of Prime Minister Datuk Seri Anwar Ibrahim. - Bernama
Barnama
23-07-2025
- Business
- Barnama
Fadillah: People's Welfare Remains Protected Even If Fuel Price Fluctuates
KUALA LUMPUR, July 23 (Bernama) -- The government has assured that the welfare and well-being of the people will continue to be protected and will not be directly impacted by any sudden changes in electricity bills resulting from fluctuations in fuel prices. Deputy Prime Minister Datuk Seri Fadillah Yusof said this is because the Ministry of Energy Transition and Water Transformation (PETRA) has set a threshold that requires the minister's approval for any changes to the Automatic Fuel Adjustment (AFA) rate if the basic energy charge and projected energy costs for the coming month rise by more than 10 per cent compared to the current month. 'This is a proactive measure by the government to ensure continued protection for electricity consumers,' he said during a question-and-answer session at the Dewan Rakyat today. He was responding to a question from Datuk Seri Takiyuddin Hassan (PN-Kota Bharu), who sought clarification on how the new Tenaga Nasional Berhad (TNB) electricity billing structure would ensure cost fairness, promote energy efficiency, and maintain targeted subsidies for the B40 and M40 groups. Fadillah, who is also the Minister of Energy Transition and Water Transformation, said the Cabinet had approved the implementation of the AFA mechanism on June 11, replacing the Imbalance Cost Pass-Through (ICPT) mechanism. Under the new system, fuel cost adjustments will be made monthly instead of every six months. Explaining further, he said the government is actively encouraging consumers to adopt energy-efficient systems and renewable energy to help reduce the nation's overall energy consumption. To ease the impact of electricity bills while promoting energy efficiency, Fadillah said the government has introduced energy efficiency incentives. These incentives are provided directly to domestic consumers with electricity usage of 1,000 kilowatt hours (kWh) or less, as well as to micro, small and medium enterprises (MSMEs) consuming 200 kWh or less. 'This incentive is designed to encourage the target group to practice smarter energy management, while ensuring that MSME businesses do not need to raise the prices of goods and services due to the new tariff rate. 'In addition, domestic consumers with electricity usage of 600 kWh and below will be exempted from paying retail charges. This is part of the government's effort to ensure that this group continues to be protected and is not burdened by the implementation of the new schedule,' he said.
