Govt raises electricity bill protection threshold to 800kWh

The Malaysian government has raised the threshold for exempting domestic electricity consumers from certain charges and taxes. Prime Minister Anwar Ibrahim announced that households using up to 800kWh of electricity per month will no longer be subject to the Automatic Fuel Cost Adjustment, retail charges, and sales and service tax.

This adjustment was made to address the current cost of living pressures faced by the population. Anwar, who serves as the finance minister, stated that the increase in electricity usage, due to factors like haze and hot weather, had pushed consumption above the previous 600kWh threshold, exposing households to the AFA charges. The Automatic Fuel Cost Adjustment mechanism adjusts electricity generation fuel costs based on market prices and foreign exchange rates.

The government's decision follows a meeting with the Energy Commission and Tenaga Nasional Bhd to discuss easing the impact of higher electricity bills. Anwar thanked the involved parties for their cooperation and emphasized ongoing monitoring of fuel costs and energy market conditions to balance affordability, electricity supply security, and the sustainability of the country's energy sector.