TNB to provide expanded fuel surcharge exemption as more households qualify

Tenaga Nasional Bhd (TNB) announced on September 18 that it will allocate RM120 million to RM150 million in support for an expanded electricity tariff fuel-s surcharge exemption, benefiting a growing number of households until the end of the year. This exemption covers the automatic fuel adjustment, the RM10 monthly retail charge, and sales-and-services tax, resulting in estimated savings of RM150 million for eligible individuals.

The government recently expanded the household threshold for exemption from the surcharge from 600 kilowatt-hours per month to 800 kilowatt-hours. Previously, 13 per cent of households paid the three additional billing components, which rose to 20 per cent in July. The Energy Commission had previously cautioned that the surcharge would be triggered due to surging coal and natural-gas prices following the Middle East conflict.

Factors contributing to increased electricity consumption, according to TNB, include higher temperatures, work-from-home arrangements prompted by the Iran oil price shock, and heightened usage during the 2026 World Cup. By raising the threshold, TNB aims to protect 90 per cent of residential customers from the extra charges. A consumer with a monthly consumption of 700 kilowatt-hours would benefit from a RM40 reduction under this new measure.