KUALA LUMPUR: The government is reviewing the electricity subsidy mechanism for 2027 with Tenaga Nasional Bhd (TNB) and the Energy Commission.
Implementation parameters and funding arrangements are yet to be finalised, according toTreasury secretary-general Tan Sri Johan Mahmood Merican.
Johan said the current mechanism, which runs until Dec 31, aims to protect about 85 per cent of households from higher electricity bills.
He said the expansion of subsidy protection accounted for increased electricity consumption during hot weather and haze, which pushed some households beyond the previous monthly threshold of 600 kilowatt-hours (kWh).
This resulted in significantly higher electricity bills for affected consumers, prompting the government to review the level of protection.
"The government is reviewing the way forward with TNB and ST, including the parameters for next year and the extent to which the costs will be borne by the government or through the relevant adjustment mechanism," he said.
Johan was responding to a question at a post-2027 Budget debate today.
He said the decision on the electricity subsidy mechanism for next year had not been finalised, including how the costs would be shared between the government and TNB.
On Sept 17, Prime Minister Datuk Seri Anwar Ibrahim announced that the electricity bill protection threshold for domestic customers would be raised to 800kWh a month from 600kWh.
He said the move was an immediate measure to ease the burden on households facing higher electricity bills.
Under this measure, domestic customers consuming up to 800kWh a month will be exempt from the automatic fuel cost adjustment charge, the eight per cent sales and service charge and retail charges.
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