Cover image via Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
The government has expanded the electricity subsidy threshold for domestic users from 600 kilowatt-hours (kWh) to 800kWh per month
Running from September until 31 December, this immediate intervention aims to shield households from rising utility costs caused by recent heatwaves and haze, according to the New Straits Times.
Under the revised threshold, residential consumers using up to 800kWh monthly will be fully exempt from the Automatic Fuel Adjustment (AFA) mechanism, retail charges, and the Sales and Service Tax (SST).
Prime Minister Datuk Seri Anwar Ibrahim stated in an official release that prolonged hot weather across the country had forced many families to run cooling appliances far more frequently
This shift pushed average monthly usage well beyond the previous 600kWh limit, resulting in exceptionally high electricity bills for affected households.
The policy decision follows a high-level meeting convened by Anwar to address widespread public dissatisfaction over escalating energy costs.
The urgent discussions brought together representatives from the Ministry of Energy Transition and Water Transformation (Petra), the Energy Commission (EC), Tenaga Nasional Bhd (TNB), and the Ministry of Finance.
Anwar stressed that the government will continuously evaluate global fuel market trends and energy production costs to strike a fair balance between public affordability, grid sustainability, and overall power supply security.
He also expressed gratitude to TNB, Petra, and the EC for facilitating the rapid rollout of the expanded relief measure.
National utility operator TNB previously clarified that the AFA mechanism itself does not directly trigger sudden price surges
The dual-directional tariff system adjusts consumer charges periodically based on international fuel market fluctuations and foreign exchange volatility, according to a statement to the New Straits Times. When global fuel costs drop, users receive bill rebates; conversely, rising generation costs translate into surcharges.
TNB noted that an AFA surcharge has been in effect since May following ongoing geopolitical tensions in the Middle East. For September, the AFA surcharge was fixed at 3.67 sen per kWh. Since the AFA framework's introduction, Malaysian consumers have benefited from RM3.1 billion in cumulative rebates, compared with RM800 million in surcharges.
Domestic users consuming 600kWh or less per month remain completely shielded from all AFA adjustments, whether rebates or surcharges apply, alongside full exemptions from retail fees and the 8% service tax
TNB added that households within this baseline tier currently pay between 2% and 14% less for electricity than under previous tariff structures, depending on their total monthly consumption.
