Govt's special meeting tomorrow on measures to mitigate impact of higher electricity bills

Malaysia is grappling with widespread haze and hot, dry conditions, leading to unhealthy air quality in numerous regions. Prime Minister Anwar Ibrahim, who additionally serves as the finance minister, has announced that two ministries will convene with the Energy Commission and Tenaga Nasional Bhd (TNB) to explore ways to alleviate the strain on households due to higher electricity bills.

The recent heatwave and haze have prompted a surge in electricity usage, pushing some households’ monthly consumption above the 600kWh mark, thus triggering the “Automatic Fuel Adjustment” (AFA) mechanism. Anwar emphasized that the government remains committed to fairly and reasonably implementing targeted subsidy measures, prioritizing the well-being of Malaysian citizens.

Households using less than 600kWh per billing cycle are currently exempt from both the AFA charge and retail charge. The AFA mechanism calculates fuel costs for electricity generation based on market prices and foreign exchange rates, with these rates reviewed monthly. If actual fuel costs drop below projections, consumers receive rebates; conversely, higher costs result in additional charges. Currently, the AFA rate is set at 3.67 sen per kWh due to elevated global fuel prices.