Kuala lumpur: The Energy Commission (ST) has taken proactive measures to secure a stable supply of feedstock, specifically gas and coal, for electricity generation amid ongoing conflicts in West Asia. Siti Safinah Salleh, the chief executive officer of the Energy Commission, announced these steps during the ST Annual Regulatory Review 2026, highlighting the organization's commitment to maintaining a consistent energy supply.
According to BERNAMA News Agency, the CEO emphasized that the commission has secured a comprehensive stock of coal and is ensuring that power plants remain operational and ready throughout the year. These efforts are primarily focused on the supply side, as ST collaborates with the finance ministry and other agencies to explore additional collective measures.
Despite these efforts, Malaysia is not completely shielded from the repercussions of the West Asia conflict. Siti Safinah indicated that cost implications are anticipated to emerge by June. Currently, Malaysia imports the majority of its coal from Indonesia (65%) and Australia (20%), with the rest sourced from various other countries. In terms of gas, 80% is sourced domestically, while 20% is imported, mainly from Australia.
Regarding the Automatic Fuel Adjustment (AFA), Siti Safinah stated that despite ongoing conflicts, AFA adjustments are expected to continue offering rebates until June or July. However, she warned of a likely increase in energy costs due to the pressure on global supply resulting from the situation in West Asia. The AFA mechanism adjusts electricity and gas energy rates periodically, reflecting the cost of supply.
When questioned about potential adjustments to reflect the current situation, Siti Safinah explained that the AFA forecast is still below the 10% threshold of the prevailing monthly cost generation. If costs exceed this threshold, ST will consult the government to decide whether to pass some of the costs on to consumers.
Siti Safinah also underscored the importance of managing demand, highlighting that energy security depends on both supply and responsible consumption by consumers. She urged everyone to contribute to energy efficiency, emphasizing the collective responsibility in ensuring energy security.
Additionally, it was reported that TNB recently announced a slightly lower rebate of 0.47 sen per kilowatt hour (kWh) for April, with forecasts for the AFA rates for May, June, and July indicating fluctuations in consumer rebates. The AFA mechanism, which has replaced the previous Imbalance Cost Pass-Through (ICPT), adjusts based on market fuel costs and foreign exchange rates.