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BUSINESS • 27/10/2026 08:38 PM

Govt Prepared To Re-Engage With Industry Players On CRESS Charge -- Fadillah

KUALA LUMPUR, Oct 27 (Bernama) -- The government is prepared to re-engage with industry players to look at the possibility of improving the fee structure of the Corporate Renewable Energy Supply Scheme (CRESS).

Deputy Prime Minister Datuk Seri Fadillah Yusof said a system access charge (SAC) of 14 sen per kilowatt-hour (kWh) is borne by renewable energy developers, while a separate charge of four sen per kWh is paid by end-consumers of green energy.

Fadillah, who is also the Minister of Energy Transition and Water Transformation, said the charge imposed on developers was initially set at 20 sen before being reduced to 14 sen following engagement sessions, while the four-sen charge imposed on end-users had already been in place before the announcement.

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Confusion arose following media reports that combined the two charges into a single rate of 18 sen, he said when winding up the Supply Bill 2027 debate at policy stage for his ministry in the Dewan Rakyat today.

Fadillah pointed out that the CRESS charge comprises three components: operation and regulatory cost, market development cost, and system augmentation cost.

However, Yeo Bee Yin (DAP-Puchong), who interjected while Fadillah was explaining the matter, said the effective rate for electricity transmission under CRESS was, in fact, 18 sen per kWh.

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Yeo said industry players had previously understood that the SAC was 14 sen until the Energy Commission gave a clarification on the combined SAC rate about two weeks ago, which disappointed them.

In response, Fadillah said the government has taken note of the concerns raised by industry players.

Meanwhile, the Deputy Prime Minister said the Energy Commission is developing a comprehensive framework and guidelines on self-generation facilities, as well as the stipulated requirement for data centres to use at least 30 per cent renewable energy, as approved by the government.

He added that data centres are also encouraged to participate in CRESS to obtain green energy supplies directly.

-- BERNAMA

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