Threshold for domestic user electricity subsidies raised to 800kWh


PETALING JAYA: Domestic consumers will now enjoy electricity bill subsidies for usage of up to 800kWh a month, up from 600kWh, until Dec 31, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the measure is an immediate step to address the current cost-of-living pressures faced by the people.

He added that recent haze and hot weather have contributed to increased electricity consumption among some households, causing their monthly usage to exceed 600kWh and resulting in high electricity bills.

"Under the measure, domestic users who consume up to 800kWh of electricity per month will be protected through exemptions from the Automatic Fuel Cost Adjustment (AFA), retail charges and Sales and Service Tax (SST)," he said in a statement on Thursday (Sept 17).

Anwar also extended his special appreciation goes to Tenaga Nasional Berhad (TNB), The Energy Transition and Water Transformation Ministry and the Energy Commission for their roles in making it possible to implement this measure promptly.

The government, he said, would continue to closely monitor developments in fuel costs and current energy market conditions.

This is to ensure that any decisions relating to electricity tariffs take into account the balance between affordability and the people's cost-of-living burden, electricity supply security and the sustainability of the country's energy sector, said Anwar who is also the Finance Minister.

Earlier, a special meeting to discuss measures to mitigate the impact of higher electricity bills on households ended after an hour at the Finance Ministry, chaired by Anwar.

Senior officials from TNB and the Energy Commission were also present.

The haze and hotter weather in recent weeks had caused some households to increase their electricity consumption beyond the 600kWh threshold, making them subject to the AFA.

The AFA was introduced on July 1, 2025 following the restructuring of the electricity tariff, replacing the Imbalance Cost Pass-Through (ICPT) mechanism.

The AFA is adjusted on the first of every month based on fuel prices, resulting in either a rebate or an additional charge.

 

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