Any rise in electricity tariffs won’t burden businesses, says PM
PETALING JAYA: Prime Minister Anwar Ibrahim has given an assurance that any increase in electricity tariffs in the second half of 2025 will not burden businesses, while 85% of households will continue receiving subsidies.
Business Sector to be Protected
Anwar, who is also the finance minister, said any tariff adjustments will be done carefully to ensure they do not burden the business community, Bernama reported.
No Impact on Low-Income Households
Speaking at a Chinese New Year celebration organised by the Associated Chinese Chambers of Commerce and Industry of Malaysia today, he reiterated that low-income households would remain unaffected by the scheduled tariff review.
Current Subsidy Structure
Currently, the government subsidises electricity costs for 85% of households.
Electricity Tariff Review Framework
Electricity tariffs are set under the Energy Commission’s Incentive-Based Regulation framework, reviewed every three years.
Imbalance Cost Pass-Through Mechanism
There is also the Imbalance Cost Pass-Through mechanism, which adjusts electricity rates based on actual fuel cost fluctuations, reviewed every six months.
Upcoming Tariff Review
It was previously reported that the government was finalising the new tariffs for Peninsular Malaysia, set for review in July.
Conclusion
Prime Minister Anwar Ibrahim has assured that any increase in electricity tariffs will be done carefully to ensure it does not burden businesses, while 85% of households will continue receiving subsidies. The government’s commitment to protecting low-income households and the business sector is commendable.
FAQs
Q: What is the percentage of households that will continue receiving subsidies?
A: 85% of households will continue receiving subsidies.
Q: When is the next electricity tariff review scheduled?
A: The new tariffs for Peninsular Malaysia are set for review in July.
Q: How often are electricity tariffs reviewed?
A: Electricity tariffs are reviewed every three years under the Energy Commission’s Incentive-Based Regulation framework, and every six months under the Imbalance Cost Pass-Through mechanism.