{
  "id": 14658558,
  "title": "Govt Considering Update To Electricity Tariff Mechanism Next Year",
  "url": "https://urgent.news/2026/10/15/govt-considering-update-to-electricity-tariff-mechanism-next-year",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-10-15T09:13:30.000Z",
  "source": {
    "name": "Lowyat.NET",
    "slug": "lowyat-net",
    "url": "https://www.lowyat.net/2026/407477/govt-electricity-tariff-update/"
  },
  "original_language": "en",
  "account": "The Malaysian government is contemplating a new electricity tariff mechanism for 2024 to ensure more equitable rates for both residential and industrial consumers. Deputy Prime Minister and Energy Transition Minister, Datuk Seri Fadillah Yusof, revealed that the Energy Commission will conduct a thorough study to protect consumers and stimulate more efficient energy usage. The study will be completed in time for the tariff changes to be implemented the following year.\n\nRising global fuel prices, driven by the geopolitical crisis in the Middle East, are significantly contributing to the escalation of electricity costs. The Strait of Hormuz, responsible for approximately 20% of global crude oil and liquefied natural gas (LNG) trade, has been experiencing disruptions that have intensified the pressure on electricity generation costs. Additionally, the hot climate in Malaysia has led to increased electricity consumption, especially for air conditioning use, while reduced hydroelectric power generation and scheduled outages at coal-fired power plants have increased reliance on imported LNG.\n\nFadillah mentioned that fuel procurement costs have surpassed expectations during the current crisis, which has led to heightened pressure on electricity bills. In response to a question from Azli Yusof, the Deputy Prime Minister confirmed that the government is exploring additional measures to shield consumers from the rising costs of electricity. The proposed tariff mechanism suggests that consumers with higher electricity usage, particularly data centres and industrial players, could be charged different rates from residential users. This approach aims to create a fairer tariff structure while shielding households from the burden of higher electricity costs.\n\nIndustries, particularly data centres, are expected to face distinct rates under the proposed system, as Malaysia continues to attract investments in these facilities that demand substantial electricity. The government intends to maintain affordability for domestic users while ensuring competitive industrial electricity rates compared to other countries.",
  "summary": "The government is reviewing a new electricity tariff mechanism to ensure fairer rates for domestic and industrial users. The proposed approach aims to keep household electricity bills affordable while ensuring that businesses remain competitive. Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said the Energy Commission (EC) has been […] The…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}