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Anwar: Electricity Tariff Increase Won’t Be 14%; Rate To Be Determined

The tariff increase rate is decided based on current fuel prices.

by Ian Chee
February 4, 2025
Prime Minister Anwar Ibrahim

[Image: RTM / Facebook.]

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It was previously reported that the basic electricity tariff in Peninsular Malaysia would be raised from 39.95 sen / kWh to 45.62 sen / kWh, or an increase about 14.2%, come July 2025. More recently, Prime Minister Anwar Ibrahim has said that while there will be an increase, it will not be at the reported 14% rate.

Anwar, who is also finance minister, says that the increase won’t be “to the extent that it becomes cumbersome or a disadvantage to the community”. is “something which needed to be done”, to fund key national priorities, including education, healthcare, infrastructure and digital transformation. All that being said, an exact figure as to the increase was not provided.

“I think there was some confusion because of the way the announcements were made”, the PM said. “But it sure is not what is being said. That’s why I just checked with Zafrul (MITI minister Tengku Zafrul Tengku Abdul Aziz) to see if I got it wrong”.

energy commission tnb electricity tariff
The Energy Commission main office in Putrajaya (Image: Energy Commission)

The basic electricity tariff is set by the Energy Commission, and is reviewed every three years. Beyond that, there’s also the Imbalance Cost Pass-Through (ICPT), which is reviewed every six months and is determined by current fuel prices.

According to Bernama, Anwar also says that low-income households will remain unaffected by the scheduled tariff review. The report also notes that the government currently provides electricity subsidies to over 85% of households.

(Source: Bernama, Malay Mail, paultan.org, Astro Awani [1], [2])

Filed Under electricityelectricity tariff rateEnergy CommissionMalaysiatariff
Updated 4:24 pm, Tue, 4 February 25
https://lowy.at/esajw
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