Malaysia

RM2.8b energy incentives benefit 9.2 million consumers in Peninsular Malaysia

Domestic consumers using 600 kilowatt hours (kWh) or less per month are exempted from the Automatic Fuel Adjustment (AFA) mechanism, shielding them from fluctuations in global fuel prices.

Updated 5 months ago · Published on 03 Apr 2026 6:37PM

RM2.8b energy incentives benefit 9.2 million consumers in Peninsular Malaysia
Consumers with monthly electricity usage of 1,000 kWh and below are eligible for the Energy Efficiency Incentive - April 3, 2026

ABOUT 9.2 million electricity consumers in Peninsular Malaysia have benefited from the Energy Efficiency Incentive, with total savings amounting to RM2.8 billion since its introduction, aimed at easing the financial burden amid the global energy crisis.

Energy Commission (ST) chief executive officer Siti Safinah Salleh said domestic consumers using 600 kilowatt hours (kWh) or less per month are exempted from the Automatic Fuel Adjustment (AFA) mechanism, shielding them from fluctuations in global fuel prices.

“Consumers with monthly electricity usage of 1,000 kWh and below are eligible for the Energy Efficiency Incentive, which encourages more efficient energy consumption,” she said as reported by Bernama.

She noted that while global fuel price volatility is expected to affect electricity generation costs, the impact remains manageable through diversified energy sources and AFA adjustments.

Siti Safinah also urged the public to adopt prudent energy usage to ensure long-term sustainability.

“We must work together to face this challenge. As energy consumers, we should use electricity efficiently and responsibly to ensure the sustainability of long-term energy supply,” she said, welcoming Prime Minister Datuk Seri Anwar Ibrahim’s call for collective action.

Among the practical measures recommended are setting air conditioner temperatures at 24 degrees Celsius, using LED lighting, and switching to the Time-of-Use tariff scheme for smart meter users.

She said households could achieve monthly savings of between five and 10 per cent by optimising electricity use, particularly during off-peak hours from 10 pm to 2 pm.

Simple habits, such as switching off electrical appliances when not in use, can also help reduce consumption.

Consumers are encouraged to choose energy-efficient appliances with four- or five-star ratings,” she added.

She stressed that energy-saving practices not only lower electricity bills but also support national efforts to address the global energy crisis and ensure long-term energy sustainability.

Meanwhile, Deputy Prime Minister Datuk Seri Fadillah Yusof recently announced tighter energy usage controls in government buildings, including setting air conditioning temperatures at a minimum of 24 degrees Celsius.

The global energy crisis has been exacerbated by geopolitical tensions, including recent military conflicts involving Israel, the United States, and Iran, which have disrupted energy markets worldwide. – April 3, 2026

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