TNB says it will bear cost impact of expanded fuel surcharge exemption as more households qualify

Tenaga Nasional Bhd (TNB) has announced it will absorb the financial impact of an expanded electricity tariff fuel-surcharge exemption, set to remain in effect until the end of the year. The government's recent decision to cover the automatic fuel adjustment, the RM10 monthly retail charge, and sales-and-services tax will save eligible households an estimated RM150 million.

This change comes after the Energy Commission warned in April that increased coal and natural-gas prices, resulting from the Middle East conflict, would necessitate the surcharge. The number of households benefiting from this exemption has risen from 13% in January to 20% in July, with the threshold for exemption moving from 600 to 800 kilowatt-hours per month.

TNB attributes the increased consumption to factors such as warmer weather, work-from-home arrangements, and higher electricity use during the 2026 World Cup. By raising the threshold, TNB aims to protect 90% of residential customers from the extra charges, with a household using 700 kilowatt-hours a month now paying RM40 less under the new measure.