Anwar Denies Flip-Flop Claims on Electricity Tariffs Following Wan Ahmad Fayhsal’s Question

KUALA LUMPUR: Prime Minister Anwar Ibrahim has rejected allegations of the government flip-flopping on the electricity tariff hike, clarifying that his statement on the matter was taken out of context. Speaking in the Dewan Rakyat today, Anwar addressed the concerns raised by Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang), who questioned the government’s stance on the electricity tariff increase.

Anwar explained that his remark on the tariff hike, which is expected in the second half of 2025, was a response to inquiries from industry players. He clarified that the tariff increase would not affect 85% of households and would not burden businesses. The adjustment would be based on the imbalance cost pass-through mechanism, which reflects fluctuations in actual fuel costs and would be reviewed every six months.

The Prime Minister further explained that the electricity tariff increase would not exceed 14% and emphasized that the government was committed to balancing the needs of the public and businesses. He stressed that the increase was necessary to ensure the sustainability of the energy sector and maintain fair pricing in the long term.

Anwar’s statement followed a report by Malaysiakini, which initially quoted the Prime Minister as stating that the electricity tariffs would increase in the second half of the year. The news portal later amended its report to clarify Anwar’s comments.

Wan Ahmad Fayhsal, in his inquiry, also expressed concern over the need for market certainty on the matter, pointing out that investors and businesses required clear direction. Anwar responded that the government was working to ensure stability and transparency in the pricing structure, reassuring the public that steps would be taken to minimize the impact on households and businesses alike.

The Prime Minister also noted that electricity tariffs are set under the Energy Commission’s incentive-based regulation framework, which is reviewed every three years to ensure that the rates remain aligned with market realities.