KWIE reserves may be insufficient to sustain electricity bill relief, says ministry
KUALA LUMPUR: The government is exploring alternative measures to protect electricity consumers from rising costs beyond December, amid concerns that reserves in the Electricity Industry Fund (KWIE) may be insufficient to sustain existing assistance.
Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad said the ministry and the Energy Commission (ST) were examining ways to maintain electricity bill protection, including a possible automatic mechanism to cushion consumers against higher surcharges.
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He acknowledged that KWIE had played a significant role in absorbing electricity costs but expressed concern over its capacity to continue providing assistance.
“KWIE has helped considerably, but we are concerned that its reserves may not be sufficient.
“We are looking at other approaches that could help electricity consumers beyond 2026,” he told the Dewan Rakyat today.
Abdul Rahman was responding to a supplementary question from Ahmad Fadhli Shaari (PN-Pasir Mas), who asked whether the government would introduce an automatic protection mechanism whenever electricity surcharges increased.
Ahmad Fadhli also questioned whether existing electricity bill relief would continue after December, noting that consumers currently depended on government announcements for additional protection.
Abdul Rahman said discussions were under way with ST to explore how such protection could be maintained.
“We are certainly considering an automatic protection mechanism.
“The Energy Commission has also held discussions to ensure that these measures can be continued,” he said.
He added that the ministry was reviewing the existing Automatic Fuel Adjustment (AFA) mechanism, including a proposed tiered AFA system scheduled for implementation in 2027.
The review aims to balance electricity affordability with the need to maintain a secure and sustainable power supply.
Abdul Rahman said the government had extended electricity bill protection to domestic consumers using up to 800 kilowatt-hours (kWh) a month, equivalent to estimated bills of RM328 or less.
The measure, which took effect in September and runs until Dec 31, exempts eligible consumers from AFA adjustments, Sales and Service Tax (SST) and retail charges.
It covers approximately eight million domestic electricity consumers, or 90% of households in Peninsular Malaysia.
He attributed the higher electricity surcharges partly to geopolitical tensions in West Asia since late February, which had pushed up global fuel prices and increased reliance on more expensive imported liquefied natural gas (LNG).
Meanwhile, Mohd Isam Mohd Isa (BN-Tampin) raised concerns about the high upfront costs of installing solar panels and replacing old electrical appliances, particularly for lower-income households.
Abdul Rahman said existing assistance included the SuRIA Home programme, backed by RM150 million, which offers rebates of RM600 per kilowatt of solar capacity, capped at RM3,000 per household.
He said the programme aimed to benefit up to 50,000 households, including M40 and some B40 families.
The government also provides e-rebates of up to RM200 for eligible purchases of energy-efficient refrigerators and air conditioners under the Nur Madani initiative.