Kuala lumpur: The government has assured that the welfare and well-being of the people will continue to be protected and will not be directly impacted by any sudden changes in electricity bills resulting from fluctuations in fuel prices. Deputy Prime Minister Datuk Seri Fadillah Yusof stated that the Ministry of Energy Transition and Water Transformation (PETRA) has implemented a threshold requiring ministerial approval for any changes to the Automatic Fuel Adjustment (AFA) rate if the basic energy charge and projected energy costs for the coming month rise by more than 10 percent compared to the current month.
According to BERNAMA News Agency, this proactive measure by the government aims to ensure continued protection for electricity consumers. Fadillah made this announcement during a question-and-answer session at the Dewan Rakyat, responding to a query from Datuk Seri Takiyuddin Hassan (PN-Kota Bharu) on how the new Tenaga Nasional Berhad (TNB) electricity billing structure would ensure cost fairness, promote energy efficiency, and maintain targeted subsidies for the B40 and M40 groups.
Fadillah, who is also the Minister of Energy Transition and Water Transformation, revealed that the Cabinet had approved the AFA mechanism on June 11, replacing the Imbalance Cost Pass-Through (ICPT) mechanism. Under the new system, fuel cost adjustments will be made monthly instead of every six months. The government is actively encouraging consumers to adopt energy-efficient systems and renewable energy to help reduce the nation's overall energy consumption.
To mitigate the impact of electricity bills while promoting energy efficiency, the government has introduced energy efficiency incentives. These incentives are provided to domestic consumers with electricity usage of 1,000 kilowatt hours (kWh) or less, as well as to micro, small, and medium enterprises (MSMEs) consuming 200 kWh or less. This initiative is designed to encourage smarter energy management among the target group, ensuring that MSME businesses do not need to raise prices due to the new tariff rate.
Additionally, domestic consumers with electricity usage of 600 kWh and below will be exempted from paying retail charges, as part of the government's effort to protect this group from the burden of the new schedule. Fadillah highlighted that with the incentives and assistance offered alongside the new electricity tariff structure, the government anticipates minimal impact on electricity bills for domestic users and MSMEs. He emphasized that 85 percent of domestic consumers will remain unaffected, aligning with the aspirations of Prime Minister Datuk Seri Anwar Ibrahim.