The government has decided to maintain electricity tariffs in Peninsular Malaysia from 1 January to 30 June 2025, supported by a RM5.96 billion subsidy. A new tariff structure reflecting actual electricity supply costs is set to be implemented from July 1 2025.
Under the Fourth Regulatory Period (RP4) framework, effective from 2025 to 2027, the base tariff is reviewed every three years, considering fuel price projections, operational costs, capital expenditure, and Tenaga Nasional Berhad’s (TNB) regulated profit margin.
To cushion the impact of rising fuel costs, targeted electricity subsidies remain in place for domestic users consuming between 600 kWh and 1,500 kWh, ensuring 85% of households—around 7.1 million consumers—are not affected.
Additionally, the RM40 Electricity Bill Rebate Programme for hardcore poor households registered under e-Kasih continues in 2025, benefitting 65,515 recipients in 2024. The government is also assessing the potential impact of tariff adjustments on goods and services prices.
The announcement came from the Ministry of Energy Transition and Water Transformation.
