Kuala Lumpur:The government is actively collaborating with the Energy Commission (EC) and Tenaga Nasional Bhd (TNB) to assess the future of electricity subsidies, as the current policy covering 800 kilowatt-hours (kWh) per month is set to lapse in December 2026.

According to BERNAMA News Agency, Treasury Secretary General Tan Sri Johan Mahmood Merican stated that the parameters for next year's subsidies have not been finalized. The government is deliberating on whether the costs will be covered by the state or through existing tariff mechanisms like incentive-based regulation (IBR) and imbalance cost pass-through (ICPT).

During a panel discussion titled 'Post-Budget 2027 Debate' organized by the Malaysian Economic Association, Johan addressed questions regarding the potential extension of the subsidies into 2027. He highlighted that the previous 600 kWh monthly limit was established to protect most households from rising electricity costs, but higher consumption during certain conditions led to increased bills for some.

Johan noted that there is a continued effort to safeguard at least 85% of households, with discussions about possibly extending coverage to 90%. This initiative is seen as a way for TNB to reciprocate to consumers, given that higher consumption also boosts the company's revenue. However, the 800 kWh threshold is currently only assured until the end of this year.

On September 17, Prime Minister Datuk Seri Anwar Ibrahim announced that the electricity bill protection for domestic users would increase from 600 kWh to 800 kWh per month, effective from September to December 31, 2026. This adjustment aims to mitigate living costs for the population. Anwar, who also serves as Finance Minister, emphasized the subsidy as an immediate relief measure for the public.