Malaysia

Energy Commission introduces Energy Efficiency Incentive for prudent electricity use

Domestic consumers with electricity consumption of 1,000 kWh and below are expected to be unaffected by the implementation of the new tariff schedule.

Updated 1 year ago · Published on 20 Jun 2025 6:35PM

Energy Commission introduces Energy Efficiency Incentive for prudent electricity use
Low-voltage non-domestic consumers who use 200 kWh and below will also benefit from this incentive - June 20, 2025

THE Energy Commission (EC) will introduce the Energy Efficiency Incentive  (Insentif Cekap Tenaga) as an incentive to 23.6 million domestic consumers who practice prudent electricity use, starting July 1.

According to an EC statement, through the incentive, domestic consumers with electricity consumption of 1,000 kWh and below are expected to be unaffected by the implementation of the new tariff schedule.

“In addition, low-voltage non-domestic consumers who use 200 kWh and below will also benefit from this incentive.

“The Time of Use (TOU) Scheme has also been adjusted and expanded to longer off-peak periods, namely the entire Saturday, Sunday and from 10pm to 2pm on Monday to Friday,” it said.

It added that the move aims to encourage more efficient management of energy consumption according to demand times, in line with efforts towards a more sustainable energy system.

“If consumers take advantage of off-peak hours, they can save on electricity bills compared to using during peak hours,” it said.

EC also explained that, in order to safeguard social and welfare aspects, the government agreed that specific tariffs be maintained for the agriculture, water and sewerage services and rail (traction) operators categories.

“In addition, the 10 percent rebate will continue to be enjoyed by registered higher education institutions, schools, welfare homes and houses of worship

“The RM40 Electricity Bill Rebate Programme is also continuing, which is a maximum monthly assistance of RM40 given to heads of households with hardcore poor status who are registered in the e-Kasih system under the Prime Minister's Department (JPM),” it explained.

Eligible users can check their respective eligibility status on the official website https://semakanrebat.petra.gov.my/apps/public/index.php or visit the nearest electricity utility shop.

EC said that overall, the approach aims to promote energy efficiency and the transition to renewable energy, in line with the goal of building a more efficient and sustainable energy system.

“For this purpose, all consumers will receive electricity bills in a new, more detailed format (itemised billing).

“Following the implementation of the new tariff schedule, the majority of consumers are expected to be unaffected, and in fact, consumers who practice efficient energy use will enjoy higher savings through the Energy Efficiency Incentive,” he said.

Meanwhile, for the energy charge component, EC has also introduced a more dynamic fuel cost adjustment mechanism, namely Automatic Fuel Adjustment (AFA), which will replace the existing Imbalance Cost Pass-Through (ICPT) mechanism.

The mechanism allows generation cost adjustments to be made automatically based on current fuel prices and foreign currency exchange rates. The adjustment information will be reported monthly on EC’s website. - June 20, 2025

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