Electricity Tariffs To Increase By 14% In Peninsular Malaysia Starting July 2025
The electricity tariffs will remain unchanged for the first six months to give customers time to adjust to the new base rates.
Peninsular Malaysia will see a 14.2% increase in base electricity tariffs starting in July 2025, rising from 39.95 sen/kWh to 45.62 sen/kWh
The current electricity tariff schedule — Regulatory Period 3 (RP3) 2022-2024 — has been in place since 2014, reported FMT.
Although RP4 2025-2027 will be effective beginning next year, the first six months of tariff hikes will remain unchanged to allow customers to adjust to the new base tariffs.
Any discrepancies during this period will be covered by Kumpulan Wang Industri Elektrik (KWIE), Tenaga Nasional Berhad (TNB) said in a filing to Bursa Malaysia.
The company said the regulatory rate of return remains at 7.3%, which will enable the company to make essential investments and ensure a continuous and reliable electricity supply to meet growing demand.
Generation costs, primarily from gas and coal, are expected to remain the largest component of the electricity tariff, with any additional costs due to higher fuel prices being managed through the Imbalance Cost Pass-Through (ICPT) mechanism.
Image via Asyraf Hamzah/New Straits Times
The government recently approved the RP4 implementation under the Incentive Based Regulation (IBR) framework
The Energy Commission (EC) informed TNB about the decision on Monday, 24 December, reported the New Straits Times.
The company stated that this implementation will allow for a RM42.821 billion investment in capital expenditure (CAPEX) and RM20.782 billion in operating expenditure (OPEX).
TNB also noted that the CAPEX is expected to significantly benefit the nation's economy and prepare the electricity network for the energy transition agenda, while the OPEX supports the necessary operational and maintenance activities for all of TNB's electrical infrastructure.
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