Malaysia yet to finalise 2027 electricity subsidy arrangements
The current scheme lasts until 31 December and aims to prevent higher electricity bills for about 85 per cent of households.
Malaysia’s electricity subsidies for 2027 remain under review, with implementation details and financing still undecided, Treasury secretary-general Tan Sri Johan Mahmood Merican said. Tenaga Nasional Bhd (TNB) and the Energy Commission are involved in the discussions.
At a debate following the 2027 Budget, Johan said the review covered how costs would be divided between TNB and the government, as well as the role of the relevant adjustment mechanism. He said the existing arrangements, ending on 31 December, seek to shield about 85 per cent of households against bill increases.
Johan linked broader subsidy protection to higher power consumption during periods of heat and haze. Some households exceeded the former monthly limit of 600 kilowatt-hours (kWh), leading to significantly larger bills and a reassessment of the protection provided.
Prime Minister Datuk Seri Anwar Ibrahim said on 17 September that domestic customers’ monthly protection limit would rise from 600kWh to 800kWh. He described the change as an immediate step to reduce the burden of increased household electricity bills.
Under that measure, households consuming no more than 800kWh monthly will be exempt from retail charges, charges under the automatic fuel cost adjustment and the sales and service charge of eight per cent.
