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New Electricity Tariff Schedule Marks Significant Shift in Malaysia’s Energy Policy

Kuala Lumpur: The implementation of a new electricity tariff schedule starting July 1 is a clear reflection of the major reforms being undertaken by the government, particularly in the national energy sector, said Communications Minister Datuk Fahmi Fadzil. Fahmi, who is also the MADANI Government spokesperson, emphasized the initiative’s alignment with the National Energy Transition Roadmap (NETR), aiming to increase the use of renewable energy and reduce carbon emissions by 2050.

According to BERNAMA News Agency, under the new tariff schedule, 85 percent of domestic consumers or account holders are expected to enjoy the same or even lower electricity rates starting July 1, 2025, provided their monthly usage does not exceed 1,000 kilowatt hours. This is one of the key reforms being advanced in a coordinated manner by the government, together with the Ministry of Energy Transition and Water Transformation (PETRA), the Energy Commission (ST), and Tenaga Nasional Berhad. Fahmi noted that it demonstrates efforts to implement renewal or reform can still deliver tangible benefits to the people.

Fahmi made these remarks to reporters at the Federal Territories of Kuala Lumpur and Putrajaya’s Kita MADANI Carnival at IWK Eco Park, Pantai Dalam. Also present was Information Department director-general Julina Johan. On Friday, the ST announced that more than 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates due to the newly approved tariff schedule by the government.

ST, in a statement, mentioned that this tariff determination will take effect from July 1, 2025, to December 31, 2027, under the Incentive-Based Regulation (IBR) framework, in line with Section 26 of the Electricity Supply Act 1990. It highlighted that the electricity tariff changes for Regulatory Period 4 (RP4) involve restructuring the average base tariff rate, the new tariff schedule, and the fuel cost adjustment mechanism.

The Average Base Tariff Rate for the RP4 period has been set at 45.40 sen/kWh, slightly lower than the 45.62 sen/kWh approved in December 2024, reflecting an overall reduction of up to 19 percent in the average electricity tariff compared with RP3. Earlier, Fahmi, who is also the Member of Parliament for Lembah Pantai, officiated the Kita MADANI Carnival, aiming to bring the community closer to government services through a casual, informative programme highlighting current issues, policies, and initiatives aligned with the Malaysia MADANI concept.

The programme featured Rahmah MADANI Sale and Agro MADANI sale, sports competitions for children, and exhibitions involving 21 government agencies, including counters for traffic summons payments and driving licence renewals.

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