8 million households to be exempted from selected electricity charges

KUALA LUMPUR: The Dewan Rakyat was informed that around eight million domestic consumers in Peninsular Malaysia will receive exemptions from specific electricity charges between September 1 and December 31. Energy Minister Datuk Seri Fadillah Yusof explained that households with monthly electricity consumption of up to 800 kilowatt-hours (kWh) - equivalent to a monthly bill of RM328 or less - will be exempt from Automatic Fuel Adjustment (AFA) surcharges, Sales and Service Tax (SST), and retail charges.

This provision covers 90% of domestic consumers in Peninsular Malaysia, surpassing the Energy Commission's (ST) April assurance of protecting at least 85%.

Consumers using less than 1,000 kWh monthly are also eligible for rebates under the newly introduced Energy Efficiency Incentive scheme, effective July 1, 2025. The scheme aims to promote efficient electricity usage. Fadillah attributed the rise in electricity bills to the impact of rising global fuel prices due to geopolitical tensions in the Middle East, particularly security issues in the Strait of Hormuz, a crucial energy route.

This route accounts for about 20% of global crude oil and liquefied natural gas trade and supplies 40% of Malaysia's fuel. The Strait's disruption led to gas and coal prices exceeding the base prices set under the Incentive-Based Regulation (IBR) framework for 2025-2027. Consequently, higher fuel prices increased electricity generation costs in Peninsular Malaysia, resulting in AFA surcharges for consumers.