Prime Minister Anwar Ibrahim clarifies that reports of a 14% electricity tariff hike are false. He confirms that tariffs will rise in the second half of 2025, with the exact rate determined after a review considering capacity and price. The government aims to keep the increase manageable for the public.
Prime Minister Datuk Seri Anwar Ibrahim has clarified that reports of a 14% increase in electricity base tariff are untrue. While he confirmed that electricity tariff s are expected to rise in the second half of 2025, the exact rate will be determined after a review. This review will consider capacity and price for a specific period.
Anwar stated that the increase will not be as substantial as initially reported and that the government is committed to ensuring the adjustment does not heavily burden the community. He emphasized that the six-month revision cycle is based on the prevailing rate and that a thorough check was conducted to verify the accuracy of the information.The clarification follows news reports indicating a potential increase in the base electricity tariff from 39.95 sen/kWh to 45.62 sen/kWh (+14.2%) in July 2025, along with a new tariff schedule. This change is part of the three-year Regulatory Period 4 (RP4), effective from January 2025 to December 2027, replacing RP3 (2022-2024). However, from January to June 2025, there will be no changes in electricity tariff rates or structures, allowing the public ample time to adjust.The current tariff schedule has been in place since 2014. Tenaga Nasional Berhad (TNB) highlighted that the RP4 implementation reflects the government's commitment to the Incentive Based Regulation (IBR) framework. TNB stated that under RP4, they are dedicated to ensuring a reliable and continuous electricity supply, enhancing customer service levels, and supporting the nation's energy transition initiatives. Generation costs remain the primary factor influencing electricity tariffs, with gas and coal serving as the primary fuel sources during this period. Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the ICPT mechanism. Therefore, the upward adjustment is inevitable, but the extent will be determined based on the review process
Electricity Tariff Anwar Ibrahim Malaysia Tenaga Nasional Berhad TNB ICPT Regulatory Period 4 Energy Transition
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