Accra:The government is working on refining its approach to electricity tariffs to ensure they are fairer and better aligned with current conditions, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. This initiative is set to take place next year.

According to BERNAMA News Agency, Fadillah, who also serves as the Energy Transition and Water Transformation Minister, stated that the Energy Commission (EC) has been tasked with conducting a detailed study to promote more efficient energy consumption. A key approach under consideration is a user-pay model, where higher energy consumers like data centers and industries would face different rates compared to domestic users. This aims to protect domestic consumers by ensuring fairer electricity tariffs.

In response to a query from Azli Yusof (PH-Shah Alam) regarding the review of the exemption for electricity charges for usage up to 800 kilowatt-hours (kWh) after December 31, 2026, Fadillah mentioned that despite the rise in electricity generation costs due to the West Asia crisis, the government has ensured that domestic users consuming less than 600 kWh are shielded from the higher costs. This threshold has been increased to 800 kWh.

To promote efficient energy use, initiatives such as 'time of use' with lower rates during specific periods, and a RM40 electricity bill rebate for hardcore poor households, supported by a RM55 million allocation for 2026, have been introduced. Additionally, the government has allocated RM150 million for the SuRIA Home programme, offering a rebate of RM600 per kilowatt of alternating current (kWac) for residential solar installations, capped at RM3,000 for systems up to five kWac. This programme targets 45,000 to 50,000 households, particularly in the M40 income group and some in the B40 group who can afford solar systems.

The NUR MADANI programme is another initiative, providing a RM200 rebate to individuals purchasing energy-efficient air-conditioners and top-rated refrigerators. The government is fine-tuning its approach to ensure that future electricity tariffs are more consumption-based, with different rates for domestic consumers and industries, and tailored strategies for high energy users. This is aimed at creating a fairer system better suited to future conditions.