Kuala Lumpur:The government is collaborating with the Energy Commission (EC) and Tenaga Nasional Bhd (TNB) to assess future electricity subsidies as the current 800 kilowatt-hours (kWh) monthly consumption threshold will expire in December 2026.
According to BERNAMA News Agency, Treasury Secretary General Tan Sri Johan Mahmood Merican indicated that the government has not yet determined the subsidy parameters for the following year. The review will consider whether costs will be borne by the government or absorbed through existing electricity tariff mechanisms.
Johan, speaking at a 'Post-Budget 2027 Debate' organized by the Malaysian Economic Association, addressed the possibility of extending the current subsidies into 2027. He noted that the previous 600 kWh limit aimed to protect households from high electricity costs, but increased consumption during hot weather and haze led to some exceeding this threshold, raising their bills significantly.
He mentioned there is an intention to continue protecting at least 85 percent of households, with discussions considering extending this to 90 percent. This could also allow TNB to offer benefits back to consumers, as higher consumption increases the company's revenue. Currently, the 800 kWh threshold is set to remain until the end of the year.
On September 17, Prime Minister Datuk Seri Anwar Ibrahim announced an increase in the electricity bill protection for domestic users from 600 kWh to 800 kWh per month, effective until December 31, 2026. This measure aims to alleviate cost-of-living pressures for the public.