Govt Temporarily Increases Electricity Bill Protection Threshold To 800kWh Amid Rising Costs

The government of Malaysia has temporarily increased the electricity bill protection threshold for domestic users from 600kWh to 800kWh per month. This change, announced by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, will be in effect from September 2025 until December 2026. The expanded protection is designed to alleviate the growing cost of living pressures faced by Malaysian households.

Under the new measure, consumers using up to 800kWh of electricity each month will be shielded from certain charges, including the Automatic Fuel Adjustment (AFA), retail charges, and Sales and Service Tax (SST). Typically, these charges kick in once monthly usage reaches 600kWh. AFA automatically adjusts electricity generation fuel costs based on market prices and exchange rates.

An increase in prices triggers a surcharge, while a decrease leads to a rebate for customers. Since May, a surcharge of 3.67 sen per kWh has been in place due to geopolitical tensions in the Middle East. Factors such as the recent haze and hotter weather have also contributed to higher general electricity consumption. In response to public concerns, Anwar chaired a meeting with key stakeholders, including the Energy Transition and Water Transformation Ministry, the Energy Commission, Tenaga Nasional Bhd, and the Finance Ministry.

The government is committed to continuously monitoring fuel costs and energy market conditions to ensure that electricity tariff decisions consider household affordability, electricity supply security, and the sustainability of the nation's energy sector.