Govt Working Closely With Energy Commission, TNB To Review Electricity Subsidies For 2027 - Johan
KUALA LUMPUR, Oct 12 (Bernama) --The government is working closely with the Energy Commission (EC) and Tenaga Nasional Bhd (TNB) to review the way forward for electricity subsidies next year, as the current 800 kilowatt-hours (kWh) monthly consumption threshold is set to expire in December 2026.
Treasury secretary general Tan Sri Johan Mahmood Merican said the government has yet to finalise the parameters for next year, including the extent to which the cost will be borne by the government or absorbed through the existing electricity tariff mechanisms.
“The decision has yet to be finalised in terms of the parameters for next year and the extent to which the cost will be borne by the government or through incentive-based regulation (IBR) and imbalance cost pass-through (ICPT).
“I think that is still being worked on. In the meantime, the government is reviewing the way forward together with TNB and EC,” he said.
Johan was responding to a question on whether the government plans to extend the electricity subsidy, which is currently in place until December this year, into 2027 during a panel discussion titled “Post-Budget 2027 Debate” organised by the Malaysian Economic Association here today.
He also said the previous 600 kWh monthly limit was intended to shield most households from higher electricity costs.
However, he said increased electricity consumption during hot weather and haze resulted in some households exceeding the 600 kWh threshold, leading to a significant increase in their electricity bills.
“There’s a sense that we still want to protect at least 85 per cent of households. In discussions between the government and TNB, there was even a move to extend the coverage to 90 per cent of households.
“I think this is also a way for TNB to give back to consumers, as higher electricity consumption also means higher revenue for the company. Nevertheless, the decision to maintain the threshold at 800 kWh per month is currently only in place until December this year,” he added.
On Sept 17, Prime Minister Datuk Seri Anwar Ibrahim announced the expansion of the electricity bill protection for domestic users from 600 kWh to 800 kWh a month, effective for electricity consumption from September to Dec 31, 2026.
Anwar, who is also Finance Minister, said the enhanced electricity bill subsidy was an immediate measure to ease the cost-of-living pressures faced by the people.
-- BERNAMA