The government has expanded the electricity bill protection threshold for domestic users from 600kWh to 800kWh per month. According to a statement by Prime Minister Datuk Seri Anwar Ibrahim, this temporary measure is effective for electricity consumption from September until 31 December 2026.
The Prime Minister, who also serves as the Finance Minister, explained that this enhanced electricity bill subsidy is aimed at easing the cost of living pressures faced by the people. The statement went on to explain that with this move, domestic consumers using up to 800kWh a month will be protected through exemptions from the Automatic Fuel Adjustment (AFA), retail charges, as well as Sales and Service Tax (SST). Normally, these charges would apply once monthly usage reaches 600kWh.
Introduced last year, the AFA mechanism adjusts electricity generation fuel costs based on fluctuations in market prices and foreign exchange rates. Essentially, when fuel costs fall, customers get a rebate. Conversely, rising prices lead to a surcharge. Notably, a surcharge has been imposed since May due to the conflicts in the Middle East. For September 2026, the surcharge was set at 3.67 sen per kWh.
Of course, this is not the only factor affecting the electricity bills. In his statement, Anwar pointed out that the haze and hotter weather in recent times have driven up electricity consumption in general. And for certain households, this has pushed their usage past the 600kWh limit, thus exposing them to the charges and causing unusually high bills.
In response to public concerns, the Prime Minister chaired a special meeting with the Energy Transition and Water Transformation Ministry (PETRA), Energy Commission (ST), Tenaga Nasional Bhd (TNB) and the Finance Ministry. This move was the outcome of said meeting. Anwar expressed appreciation to PETRA, TNB, and ST for implementing the measure swiftly. He also asserted that the government will continue to monitor fuel costs and energy market conditions to ensure that electricity tariff decisions will factor in household affordability, electricity supply security, as well as the sustainability of the nation’s energy sector.
(Source: Anwar Ibrahim via Facebook, New Straits Times)
