Shift in electricity pricing


CGSI Research said the benefits of electricity tariff reform outweigh the costs.

PETALING JAYA: Electricity users will face a more dynamic tariff setting under the Automatic Fuel Adjustment (Afa) mechanism, a reform expected to shift the way households and businesses perceive and respond to energy costs.

The new framework, effective from the second half of 2025, replaces the long-standing Imbalance Cost Pass Through (ICPT) and introduces monthly tariff updates tied to fuel price forecasts.

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