KUALA LUMPUR: Almost 90% of all domestic electricity users in Peninsular Malaysia are set to benefit from the move to raise the electricity subsidy threshold up to 800kWh a month, says Tenaga Nasional Berhad.
TNB president and chief executive officer Datuk Shamsul Ahmad said this amounted to more than eight million domestic users.
This shields an additional one million domestic users from higher electricity bills compared to the previous 600kWh threshold.
"We understand the grievances voiced by people regarding their bills, and we welcome this move to shield domestic consumers.
"As a national utility supply company, our priority is ensuring the rakyat continues receiving safe and sustainable electricity supplies during this challenging period.
"TNB will continue playing a proactive role to assist consumers in managing their electricity consumption more effectively," he said during a press briefing here on Friday (Sept 18).
Shamsul explained that those who use less than 800kWh monthly will be exempt from the automatic fuel cost adjustment (AFA), retail charges, and sales and service tax (SST).
He added that an estimated RM120mil to RM150mil is expected to be spent on absorbing the AFA price differences up till December.
“Along the way, whatever actual charges incurred will be absorbed by TNB and perhaps some assistance from the government.
“We made a commitment and we will honour it," he said.
On the next steps following December, Shamsul said further engagements will be held with the government on the best methodologies or approaches that can be employed to minimise any impact on consumers.
He added that the 800kWh threshold is effective beginning Sept 1.
“It will be backdated. The impact can be seen in the October bill. Whatever has been charged, will be rebated in the October bill and a significant reduction can be seen then,” he said.
On Thursday (Sept 17), Prime Minister Datuk Seri Anwar Ibrahim said domestic consumers will now enjoy electricity bill subsidies for usage of up to 800kWh a month, up from 600kWh, until Dec 31.
Anwar, who is also Finance Minister, said the measure was an immediate step to ease the cost-of-living pressures faced by households.
He said recent haze and hotter weather also contributed to higher electricity consumption, pushing some households above the 600kWh monthly threshold and resulting in higher-than-usual bills.
Under the prior electricity tariff structure, domestic consumers using 600kWh or less a month are exempt from the AFA and the retail charge.
The AFA mechanism adjusts electricity generation charges monthly based on changes in fuel prices, power purchase costs and other generation-related costs.
