Tenaga Nasional Bhd (TNB) expects to absorb between RM120 million and RM150 million from the expanded electricity bill protection for domestic consumers, with the final impact depending on the Automatic Fuel Adjustment (AFA) charges during the protection period.
TNB president and chief executive officer Datuk Ir Ts Shamsul Ahmad said the RM150 million figure represents the current worst-case estimate, although the actual cost could vary depending on factors including coal prices.
He said TNB would absorb the cost if the eventual impact exceeds the estimate.
“We will absorb how much we can absorb. We made the commitment, we will own the commitment,” he said during a question-and-answer session with the media following a briefing today.
TNB said the estimated RM120 million to RM150 million cost would cover the difference in AFA charges absorbed by the utility throughout the additional protection period.
The Government has raised the monthly electricity consumption threshold for domestic users receiving the protection from 600 kilowatt-hours (kWh) to 800kWh, with the enhanced threshold applying to consumption from September to December 2026.
TNB said more than eight million domestic users, or up to 90 per cent of all domestic users, would benefit from the enhanced protection.
The higher threshold is expected to bring nearly one million additional domestic users under the protection compared with the previous 600kWh threshold.
Domestic users consuming 800kWh and below a month will be exempted from the AFA, the eight per cent Sales and Service Tax (SST) and retail charges during the protection period.
TNB said it welcomed the Government’s decision, which it said would further strengthen the protection mechanism for domestic electricity users and help ease pressure on household living costs amid uncertainty in global fuel prices.
The impact of the enhanced protection will be reflected in October electricity bills, based on eligible consumption from Sept 1.
