Energy Ministry Shares 7 Tips For Malaysians To Save On Electricity Bill Amid Tax Hike

The service tax hike will not affect 85% of domestic consumers living in Peninsular Malaysia.

Cover image via Focus Malaysia

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The 8% service tax hike on electricity bills has come into effect today, 1 March

Image used for illustration purposes only.

Image via New Straits Times

The Energy Transition and Water Transformation Ministry said the majority of consumers would not feel the pinch as almost 85% of domestic consumers living in Peninsular Malaysia will not be affected by the service tax hike, as reported by the New Straits Times.

"For electricity, the service tax would only apply for households that have high electricity consumption above 600 kWh a month. Thus, 6.96 million consumers or 84.3% of consumers living in the residential category in the Peninsula will not be subjected to SST," the ministry added.

The ministry also said that this targeted subsidy represents one of the government's strategies to ensure that subsidies are allocated to those who truly deserve them.

The ministry offered tips on how the general public can reduce their electricity bill:

1. Know your consumption threshold

Understand that the service tax hike only affects households consuming above 600 kWh per month. The ministry said the new tax is expected to affect only 15% of domestic electricity users.

2. Monitor your electricity usage

"Consumers may refer to their respective monthly electricity bills to monitor their electricity consumption and the subsidies that are provided. This way, they can also estimate future monthly electricity bills by using the electricity tariff calculator available via the website," said the ministry.

3. Replace home electrical equipment

Consider replacing older appliances with newer models that have energy efficiency ratings of four or five stars.

4. Maintain electrical appliances and equipment regularly

Ensure that your electrical equipment undergoes regular maintenance to keep them running efficiently and to avoid unnecessary energy consumption.

5. Practise energy conservation at home

Adopt simple habits like switching off appliances when not in use.

6. Keep air conditioning temperatures set between 24°C and 26°C

Temperatures lower than 24°C would contribute to higher electricity usage.

7. Take advantage of government rebates

The ministry said consumers can take advantage of the e-rebate of up to RM400 through the Sustainability Achieved via Energy Efficiency (SAVE) 4.0 programme. This covers the purchase of energy-efficient air conditioners and refrigerators for home use.

Other initiatives include the Net Energy Metering for Government Ministries and Entities (NEM GoMEn) and NEM Net Offset Virtual Aggregation (NEM NOVA), which also help minimise the cost of electicity bills.

Many goods and services will see a tax increase. Here's the full list:

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