Malaysia plans a new electricity tariff system in 2027, with different rates for data centres, industries and households to ensure fairer pricing
KUALA LUMPUR: The government is fine-tuning a new approach to ensure electricity tariffs are fairer and better suited to prevailing conditions next year, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Energy Transition and Water Transformation Minister, said the Energy Commission (EC) has been tasked with conducting a detailed study next year to encourage more efficient energy consumption.
“One of the approaches being considered is a user-pay basis, whereby those who consume more energy, particularly data centres and industries, will be charged different rates compared to domestic consumers.
“This is to ensure fairer electricity tariffs, particularly to protect domestic consumers,” he said during Minister’s Question Time in the Dewan Rakyat today.
He said this in reply to a supplementary question from Azli Yusof (PH-Shah Alam) on the government’s plans to review the exemption for electricity charges for consumption of up to 800 kilowatt-hours (kWh) after Dec 31, 2026.
Fadillah said that although electricity generation costs had spiked following the West Asia crisis, the government had assured domestic consumers using less than 600 kWh of electricity that they would be protected from the higher costs. The threshold has since been raised to 800 kWh.
“To encourage more efficient energy use, we have introduced several initiatives, including ‘time of use’ which offers lower rates during certain periods, as well as the RM40 electricity bill rebate for hardcore poor households, supported by an allocation of RM55 million for 2026,” he said.
Additionally, he said the government has also allocated RM150 million for the SuRIA Home programme, with a rebate of RM600 per kilowatt of alternating current (kWac) for residential solar installations, capped at RM3,000 for systems of up to five kWac.
The programme targets between 45,000 and 50,000 households, particularly those in the M40 income group and some in the B40 group who can afford to install solar systems at home.
The government has also introduced the NUR MADANI programme, which offers a RM200 rebate to individuals who purchase energy-efficient air-conditioners and four- or five-star-rated refrigerators.
“We have implemented many approaches, but more importantly, we are fine-tuning a new approach next year to ensure electricity tariffs are more closely based on consumption, with different rates for domestic consumers and industries, and a different approach for those who consume more energy.
“We hope this will ensure a fairer system that is better suited to the circumstances we will face in the coming years,” he said.