Latest news with #RP4
Focus Malaysia
6 hours ago
- Business
- Focus Malaysia
New electricity tariff to improve transparency with five billing components
THE ENERGY Commission (EC) has introduced a revised electricity tariff structure for Peninsular Malaysia under Regulatory Period 4 (RP4), effective from 1 July 2025 to 31 December 2027, within the Incentive-Based Regulation (IBR) framework. The reform includes three key elements: i) A slightly lower base tariff of 45.40 sen/kWh, representing a 13.6% increase over RP3 (vs the 14.2% hike announced in December 2024). ii) A newly restructured electricity schedule. iii) A shift from the semi-annual Imbalance Cost Pass-Through (ICPT) to a monthly Automatic Fuel Adjustment (AFA), enabling more timely cost recovery. The impact on Tenaga Nasional (TNB) is neutral, as the regulatory rate of return on its Regulated Asset Base (RAB) remains at 7.3%, while the AFA mechanism is expected to ease TNB's working capital requirement amid volatile fuel prices. 'We maintain our Overweight rating on the sector, driven by rising electricity demand, renewed investments in Independent Power Producers (IPPs) and renewable energy, and TNB's planned RM42.9bn in capital expenditure,' said Public Investment Bank (PIB). New tariff schedule categorises users into domestic and non-domestic groups, based on voltage levels, replacing the previous multi-tier kWh usage (for domestic) and business-type-based classification. It also introduces five distinct charge components , that is Energy, Capacity, Network, Retail, and AFA, enhancing billing transparency. Notably, the Time of Use (ToU) scheme has been expanded to domestic users, offering extended off-peak hours from 10:00 p.m. to 2:00 p.m. on weekdays and all day on weekends, encouraging more efficient energy consumption during these periods. Overall, more than 23m domestic users are expected to remain unaffected by the changes, with those consuming between 0–900 kWh per month likely to enjoy slight savings. Non-domestic users in the Medium and High Voltage categories will face a higher effective Maximum Demand (MD) charge. This will incentivise large-scale commercial and industrial consumers to optimise their energy usage, particularly by reducing load during peak demand periods. This will also support broader grid stability and sustainable electricity supply-demand market. 'We maintain Overweight call with TNB (Outperform, TP:RM16) as our top pick. TNB's earnings outlook remains favourable, as the regulatory rate of return remains unchanged at 7.3%,' said PIB. The marginal reduction in base tariff is likely attributable to lower generation cost components, reflecting the decline in fuel prices observed in 1H2025. Looking ahead, the introduction of the monthly AFA mechanism is expected to enhance cost pass-through efficiency, easing TNB's working capital requirements amid ongoing fuel price volatility. —June 23, 2025 Main image: ETF Trends
The Sun
8 hours ago
- Politics
- The Sun
Lower electricity bills from July under new tariff reforms
KUALA LUMPUR: Malaysians can expect a reduction in their electricity bills beginning next month, following key reforms under the Fourth Regulatory Period (RP4: 2025–2027), said Communications Minister Datuk Fahmi Fadzil. The reforms, introduced in collaboration with the Energy Transition and Water Transformation Ministry, Energy Commission and Tenaga Nasional Berhad (TNB), have resulted in a 19% cut in base electricity tariffs from earlier projections, a move Fahmi described as a reflection of the government's commitment to meaningful structural changes that directly benefit the people. Starting July 1, about 85% of TNB customers, particularly those using 1,000 kilowatt-hours (kWh) or less each month, will experience no increase or even a decrease in their bills. Fahmi said one of the driving mechanisms behind the reduction is the Time of Use programme, which encourages households to shift energy-intensive activities such as cooking and laundry to off-peak hours, ultimately promoting energy efficiency. He added that the initiative aligns with the National Energy Transition Roadmap, which targets increased adoption of renewable energy and lower carbon emissions by 2050. On a separate matter, Fahmi dismissed claims linking newly appointed Inspector-General of Police (IGP) Datuk Seri Mohd Khalid Ismail to PKR, calling the allegations 'entirely false' and 'slanderous'. He was responding to an online infographic and news report alleging that Mohd Khalid had political ties. 'I was quite shocked by the publication of such an inaccurate graphic. I have never seen Datuk Seri Khalid at any party event, meeting or congress. This is very serious slander,' Fahmi said after attending the Kita Madani 2025 Carnival at IWK Eco Park. PKR secretary-general Dr Fuziah Salleh also clarified that Mohd Khalid has never been a PKR member nor held any role in the party, and criticised the media outlet responsible for potentially damaging the IGP's credibility and public trust in national institutions. The publication has since issued a public apology, stating that the incorrect information was published unintentionally. Fahmi also underscored the importance of the Malaysian Media Council, saying it could play a crucial role in addressing issues involving journalistic ethics. He said although the council structure is still being finalised, it is expected to serve as the best platform to handle media related misconduct. He also addressed the Malaysian Communications and Multimedia Commission's (MCMC) civil lawsuit against two Telegram channels, Edisi Siasat and Edisi Khas, for allegedly spreading content that undermines public trust and order. Marking MCMC's first legal action against a social media platform provider, the High Court has issued an interim injunction to halt further dissemination of the disputed content. Telegram is expected to present its defence according to legal and human rights principles. 'This is now under civil court consideration. I advise members of the media to refer to MCMC's official statement,' Fahmi said.
The Star
3 days ago
- Business
- The Star
Fomca lauds new 'B40-friendly' electricity tariffs
KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) has expressed full support for the implementation of the new electricity tariff structure under Regulatory Period 4 (RP4). The new tariffs will take effect from July 1, 2025, to Dec 31, 2027, under the Incentive-Based Regulation (IBR) framework. Describing it as timely, progressive and beneficial for Malaysian households, Fomca chief executive officer Dr T. Saravanan said the new tariffs reflects a fairer and more transparent energy pricing system. "This initiative comes at a crucial time when many households are facing financial pressures due to inflation and the rising cost of living," he said. Saravanan said the revised tariff structure reduces the average base tariff from 45.62 sen/kWh to 45.40 sen/kWh, contributing to an estimated 19% reduction in total average electricity costs compared to the previous regulatory period. Although the rate cut may appear marginal, he said it is supported by structural reforms that provide greater protection to domestic consumers, particularly those in the B40 and M40 income groups. Saravanan said the introduction of the "Energy Efficiency Incentive" allows households that consume 1,000 kWh or less per month to avoid any tariff increase, thereby rewarding energy-efficient users and encouraging responsible consumption. "The updated structure also includes a more detailed billing system, with breakdowns of energy generation, network usage, capacity charges, and retail costs. "This level of transparency empowers consumers to understand their bills better and provides clarity on how costs are derived," he said. The expanded "Time of Use" scheme now includes weekends and off-peak weekday hours from 10pm to 2pm the next day, enabling consumers to enjoy further savings by shifting high-usage activities to these periods. Fomca also welcomed continued protection for vulnerable groups, including a RM40 monthly rebate for hardcore poor households under the e-Kasih programme, and dedicated tariffs for the agriculture, water, sanitation, and rail sectors. A 10% rebate for educational institutions, places of worship, and registered welfare homes will also remain in place. Saravanan said the replacement of the Imbalance Cost Pass-Through mechanism with the new Automatic Fuel Adjustment system would enhance price responsiveness to global fuel and currency movements. He however stressed the need for clear communication on any resulting price changes. He urged the Domestic Trade and Cost of Living Ministry to step up enforcement against unjustified price hikes in essential goods that may be triggered by the tariff adjustment. "Fomca will continue to monitor the implementation closely and advocate for ongoing consumer engagement, education and regulatory enforcement to maximise the impact of this policy reform," he said. The Energy Commission on Friday (June 20) announced that starting July 1, 2025, over 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates under the newly approved tariff schedule for Regulatory Period 4 (2025-2027). This includes changes to the average base tariff rate, the tariff structure and the fuel cost adjustment mechanism, implemented under the Incentive-Based Regulation framework. – Bernama
The Sun
3 days ago
- Business
- The Sun
FOMCA backs new RP4 electricity tariff, calls it fair and timely
KUALA LUMPUR: The Federation of Malaysian Consumers Associations (FOMCA) has expressed full support for the implementation of the new electricity tariff structure under Regulatory Period 4 (RP4), describing it as timely, progressive and beneficial for Malaysian households. FOMCA chief executive officer Dr T. Saravanan said the new tariff, which will take effect from July 1, 2025, to Dec 31, 2027, under the Incentive-Based Regulation (IBR) framework, reflects a fairer and more transparent energy pricing system. 'This initiative comes at a crucial time when many households are facing financial pressures due to inflation and the rising cost of living,' he told Bernama. He said the revised tariff structure reduces the average base tariff from 45.62 sen/kWh to 45.40 sen/kWh, contributing to an estimated 19 percent reduction in total average electricity costs compared to the previous regulatory period. Although the rate cut may appear marginal, Saravanan said it is supported by structural reforms that provide greater protection to domestic consumers, particularly those in the B40 and M40 income groups. Saravanan said the introduction of the 'Energy Efficiency Incentive' allows households that consume 1,000 kWh or less per month to avoid any tariff increase, thereby rewarding energy-efficient users and encouraging responsible consumption. 'The updated structure also includes a more detailed billing system, with breakdowns of energy generation, network usage, capacity charges, and retail costs. 'This level of transparency empowers consumers to understand their bills better and provides clarity on how costs are derived, thereby enhancing trust and enabling more responsible consumption decisions,' he said. The expanded 'Time of Use' (TOU) scheme now includes weekends and off-peak weekday hours from 10 pm to 2 pm the next day, enabling consumers to enjoy further savings by shifting high-usage activities to these periods. FOMCA also welcomed continued protection for vulnerable groups, including a RM40 monthly rebate for hardcore poor households under the e-Kasih programme, and dedicated tariffs for the agriculture, water, sanitation, and rail sectors. A 10 percent rebate for educational institutions, places of worship, and registered welfare homes will also remain in place. Saravanan said the replacement of the Imbalance Cost Pass-Through (ICPT) mechanism with the new Automatic Fuel Adjustment (AFA) system would enhance price responsiveness to global fuel and currency movements, but stressed the need for clear communication on any resulting price changes. He also urged the Domestic Trade and Cost of Living Ministry (KPDN) to step up enforcement against unjustified price hikes in essential goods that may be triggered by the tariff adjustment. 'FOMCA will continue to monitor the implementation closely and advocate for ongoing consumer engagement, education and regulatory enforcement to maximise the impact of this policy reform,' he said. The Energy Commission today announced that starting July 1, 2025, over 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates under the newly approved tariff schedule for Regulatory Period 4 (2025–2027). This includes changes to the average base tariff rate, the tariff structure and the fuel cost adjustment mechanism, implemented under the Incentive-Based Regulation framework.
The Sun
3 days ago
- Business
- The Sun
FOMCA backs fairer, transparent electricity tariff reform
KUALA LUMPUR: The Federation of Malaysian Consumers Associations (FOMCA) has expressed full support for the implementation of the new electricity tariff structure under Regulatory Period 4 (RP4), describing it as timely, progressive and beneficial for Malaysian households. FOMCA chief executive officer Dr T. Saravanan said the new tariff, which will take effect from July 1, 2025, to Dec 31, 2027, under the Incentive-Based Regulation (IBR) framework, reflects a fairer and more transparent energy pricing system. 'This initiative comes at a crucial time when many households are facing financial pressures due to inflation and the rising cost of living,' he told Bernama. He said the revised tariff structure reduces the average base tariff from 45.62 sen/kWh to 45.40 sen/kWh, contributing to an estimated 19 percent reduction in total average electricity costs compared to the previous regulatory period. Although the rate cut may appear marginal, Saravanan said it is supported by structural reforms that provide greater protection to domestic consumers, particularly those in the B40 and M40 income groups. Saravanan said the introduction of the 'Energy Efficiency Incentive' allows households that consume 1,000 kWh or less per month to avoid any tariff increase, thereby rewarding energy-efficient users and encouraging responsible consumption. 'The updated structure also includes a more detailed billing system, with breakdowns of energy generation, network usage, capacity charges, and retail costs. 'This level of transparency empowers consumers to understand their bills better and provides clarity on how costs are derived, thereby enhancing trust and enabling more responsible consumption decisions,' he said. The expanded 'Time of Use' (TOU) scheme now includes weekends and off-peak weekday hours from 10 pm to 2 pm the next day, enabling consumers to enjoy further savings by shifting high-usage activities to these periods. FOMCA also welcomed continued protection for vulnerable groups, including a RM40 monthly rebate for hardcore poor households under the e-Kasih programme, and dedicated tariffs for the agriculture, water, sanitation, and rail sectors. A 10 percent rebate for educational institutions, places of worship, and registered welfare homes will also remain in place. Saravanan said the replacement of the Imbalance Cost Pass-Through (ICPT) mechanism with the new Automatic Fuel Adjustment (AFA) system would enhance price responsiveness to global fuel and currency movements, but stressed the need for clear communication on any resulting price changes. He also urged the Domestic Trade and Cost of Living Ministry (KPDN) to step up enforcement against unjustified price hikes in essential goods that may be triggered by the tariff adjustment. 'FOMCA will continue to monitor the implementation closely and advocate for ongoing consumer engagement, education and regulatory enforcement to maximise the impact of this policy reform,' he said. The Energy Commission today announced that starting July 1, 2025, over 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates under the newly approved tariff schedule for Regulatory Period 4 (2025–2027). This includes changes to the average base tariff rate, the tariff structure and the fuel cost adjustment mechanism, implemented under the Incentive-Based Regulation framework.
