Kuala lumpur: Tenaga Nasional Bhd (TNB) will provide between RM120 million and RM150 million in support for electricity bill protection between September and December 2026, said its president and chief executive officer Datuk Shamsul Ahmad. He stated that as the national utility company, TNB has given its commitment and viewed the move as its contribution to the country and people.

According to BERNAMA News Agency, Shamsul emphasized that this initiative is one of the ways TNB can contribute during periods of hardship, similar to their actions during COVID-19 and floods. He mentioned that the company is pleased to extend this support. In terms of impact on the company's profit and loss, TNB plans to offset costs by enhancing productivity, efficiency, and cost-effectiveness in its operations.

Shamsul noted that TNB's support is intended to address public concerns regarding increased household electricity consumption due to hot weather, heatwave, and haze. Previously, around 80 per cent of domestic customers, or about seven million households, consumed less than 600 kilowatt-hours (kWh) monthly and were protected from additional surcharges. However, the recent temperature rise caused around a million households to exceed the 600 kWh limit, subjecting them to surcharges, service tax, and retail fees.

Under the newly expanded 800 kWh threshold, for consumption from September 1 through December 31, 2026, over 90 per cent of domestic customers, representing over eight million households, will be within the protected zone. Consumers using up to 800 kWh monthly will be exempted from the Automatic Fuel Adjustment (AFA) surcharge, the eight per cent Service and Sales Tax (SST), and the RM10 retail charge. Consequently, affected households can anticipate bill reductions of around 13 per cent, translating to monthly savings of up to RM47, which will reflect in their October 2026 electricity bills.

Addressing global fuel market dynamics, Shamsul highlighted that coal, which accounts for nearly 60 per cent of Malaysia's electricity generation mix, is subject to international benchmark indices such as GC Newcastle and M40. While coal prices hovered around US$97 to US$99 per metric tonne last year, global supply constraints and increased demand ahead of the northern hemisphere winter have pushed benchmark prices to between US$131 and US$132 per metric tonne. Despite the higher generation costs, the AFA surcharge for domestic consumers within the 800 kWh limit will be mitigated through a combination of TNB's contribution and support from the Electricity Industry Fund (KWIE).