Kuala Lumpur: The Federation of Malaysian Manufacturers (FMM) has expressed its support for the electricity tariff restructuring under the Regulatory Period 4 (RP4), highlighting it as a rebasing initiative that provides greater cost transparency and promotes demand-side management.

According to BERNAMA News Agency, FMM noted that the new tariff structure reflects a 19 percent overall reduction in rates, considering current fuel prices. The federation also expressed gratitude towards the government for the RM5 billion allocation aimed at absorbing fuel cost adjustments during the first half of the year due to delays in the RP4 implementation.

FMM emphasized that 70 percent of medium voltage users are expected to benefit from lower bills, while the remaining 30 percent may encounter higher costs. These users are encouraged to enhance load management and energy efficiency. The federation particularly welcomed the 80 percent increase in off-peak hours, from 70 to 128 hours per week, including off-peak rates during weekends, which FMM has long advocated for.

Additionally, FMM highlighted the introduction of a new automated fuel adjustment mechanism, replacing the imbalance cost pass-through system, as a more effective way to align energy prices with market conditions. The organization also called for a reassessment of the tariff structure for high-voltage time-of-use categories to maintain competitiveness and appeal for high-voltage users in the long run.

Looking forward, the federation anticipates further announcements on renewable energy schemes, including the green electricity tariff, following the restructuring exercise, to promote greater adoption of renewable energy within the industrial sector.