Business : Govt To Meet Tomorrow To Review Measures To Mitigate Impact Of Higher Electricity Bills

The Malaysian government is set to convene an urgent meeting tomorrow to explore ways to alleviate the strain caused by escalating electricity bills. Prime Minister Anwar Ibrahim announced that the gathering will include representatives from the Energy Transition and Water Transformation Ministry, Energy Commission, Tenaga Nasional Bhd (TNB), and the Finance Ministry.

The prime minister expressed concern over the recent surge in electricity costs, stating that the government had taken note of the public's apprehensions and deemed the issue a priority. Following his return from India and the Maldives, Anwar said he was immediately drawn to the issues raised by citizens concerning the recent hike in electricity bills.

The government remains committed to targeted subsidies to safeguard the majority of domestic consumers from rate hikes tied to fuel cost escalations. However, recent haze and high temperatures have led some households to consume more than 600 kilowatt-hours (kWh) per month, placing them under the Automatic Fuel Cost Adjustment (AFA) scheme.

As a result, the Madani government will hold a special meeting tomorrow with the aforementioned ministries to deliberate on immediate mitigation strategies to mitigate the impact of higher electricity bills on affected households. Anwar, who concurrently serves as Finance Minister, emphasized that the government would persist in implementing targeted subsidy measures in a fair and reasonable manner, with the welfare of the people being the utmost priority.

TNB clarified that the AFA mechanism does not directly lead to sudden spikes in electricity bills, instead adjusting charges according to fluctuations in fuel costs and foreign exchange rates. When fuel costs decrease, consumers receive a rebate, while increases in fuel costs result in a surcharge. The AFA surcharge for September stands at 3.67 sen per kWh, with TNB reporting that consumers have received RM3.1 billion in rebates compared to RM800 million in surcharges since the scheme's inception.

Consumers with monthly electricity consumption of 600kWh or less are completely exempt from AFA charges, as well as the eight percent service tax and retail charges. Under the revised tariff structure, consumers in this category enjoy a reduction of two to 14 percent compared to the previous tariff, contingent on their level of consumption.