The growing complaints from households and SMEs over rising electricity costs and, more importantly, the difficulty of budgeting when charges fluctuate from month to month require serious attention and need to be tackled.
Electricity bills now include Energy, Automatic Fuel Adjustment (AFA), Capacity, Network and Retail charges, with AFA adjusted monthly.
For example, one household bill covering July 24 to August 23, 2026, recorded 1,026 kWh of consumption. Because the billing period crossed two months, AFA was charged at 3.59 sen per kWh in July and 3.80 sen in August.
For ordinary families, the question is simple: Why does the amount keep changing, and how much will I need to pay next month?
SMEs are impacted even more. Restaurants, laundries, bakeries, cold-storage businesses and small factories depend heavily on electricity. Higher costs directly hit profits, cash flow and operating expenses, potentially translating into higher prices, reduced investment or fewer jobs.
While global markets influence fuel prices, power producers can use long-term procurement contracts, inventory planning and risk-management measures to cushion short-term fluctuations.
The Government should therefore review the AFA mechanism and explore a cost-smoothing system so that short-term fuel price movements are not immediately passed on to households and SMEs.
Greater transparency is needed over the Rangkaian (Network) charge. It is only right that consumers be informed exactly what they are paying for - whether new infrastructure, maintenance, operations, depreciation or capital returns.
Consumers are not asking to avoid reasonable electricity costs. They are asking for a system that is transparent, predictable and affordable.
The Unity Government is urged to act quickly. If reducing the cost of living is a priority, electricity costs cannot be treated in isolation. Families need certainty to plan their finances, while SMEs need stability to survive, grow and create jobs.
DATUK IR LAWRENCE LOW
MCA Economic and SMEs Affairs Committee Chairman
MCA Vice-President
