MORE than 23.6 million domestic consumers in Peninsular Malaysia will enjoy fairer and more progressive electricity rates through the implementation of a new electricity tariff schedule approved by the government, the Energy Commission (EC) said today.
In a statement, the EC announced that the tariff determination will be effective from July 1, 2025 to Dec 31, 2027 under the Incentive Based Regulation (IBR) framework, in line with the provisions of Section 26 of the Electricity Supply Act 1990.
The new electricity schedule was introduced under the Incentive-Based Regulation (IBR) framework, in line with the provisions of Section 26 of the Electricity Supply Act 1990.
The electricity tariff changes for the Fourth Regulatory Period (Regulatory Period 4 – RP4) involve the restructuring of three components, namely the average basic tariff rate, the new tariff schedule and the fuel cost adjustment mechanism.
“The basic average rate has been adjusted based on the estimated cost of electricity supply for the RP4 period and is set at 45.40 sen/kWh compared to 45.62 sen/kWh approved in December 2024.
“With this adjustment, the average overall cost of electricity tariffs has decreased by up to 19 percent compared to the Third Regulatory Period (RP3),” the statement read.
In addition, the EC also informed that the changes in the electricity tariff structure include consumer categories, charges and incentives.
It said that the introduction of the new tariff schedule involves changing the consumer categories which are divided into domestic and non-domestic based on low, medium and high voltage consumers.
“Another thing also involved in the introduction of this new tariff schedule is the determination of each charge for the energy, capacity, network and retail components which are based on related costs,” the statement added. – June 20, 2025
