Electricity base tariff to go up by 14% from July 2025

Electricity base tariff to go up by 14% from July 2025

The base electricity tariff in Peninsular Malaysia will be raised from the current 39.95 sen/kWh to 45.62 sen/kWh (+14.2%) come July 2025, along with a new tariff schedule, The Star reports.

This change is part of the three-year Regulatory Period 4 (RP4) that will be effective from January 2025 to December 2027, replacing RP3 2022-2024. However, from January to end-June 2025, there will be no change in the electricity tariff rate and tariff structure, giving the public half a year to adjust. The current tariff schedule has been in place since 2014.

“Any differences from January to June 2025 (between the new and old base tariff rates) will be funded through Kumpulan Wang Industri Elektrik,” Tenaga Nasional Berhad (TNB) told the bourse, adding that the RP4 implementation shows the government’s commitment to the Incentive Based Regulation (IBR) framework.

“Through RP4 implementation under IBR, TNB commits to ensure a reliable and continuous supply of electricity to our customers, enhance customer service level and facilitate the nation’s energy transition agenda,” it said.

Electricity base tariff to go up by 14% from July 2025

The allowed capital expenditure (capex) under RP4 is RM42.821 billion (RM26.554 billion base capex + RM16.267 billion contingent capex), while the allowed operating expenditure (opex) is RM20.782 billion.

“The regulatory rate of return has been maintained at 7.3% as per RP3. This will enable TNB to make essential investments in the industry, ensuring a continuous and reliable electricity supply to meet the growing demand of customers,” the utility giant said.

Generation costs remain the largest component of the electricity tariff, with gas and coal still the primary fuel sources during this period. Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the Imbalance Cost Pass-Through mechanism.

“TNB remains neutral in this regard and there will be no impact to the company’s business operations or financial position,” it said.

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Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • ALuminium LAnthanum Hydrogen on Dec 27, 2024 at 11:45 am

    Surely going up since country economy doing very well plenty of buyers and user of EV. Those wanna save monies shud fix solar panels and backup battery pack.

    Like or Dislike: Thumb up 2 Thumb down 2
  • Indrapura Campādeśa on Dec 27, 2024 at 12:03 pm

    Too much dependency on Coals burning power plant…..

    Like or Dislike: Thumb up 36 Thumb down 5
    • DonkeyKong on Dec 27, 2024 at 12:44 pm

      If we have a high dependency on coal fired plants, our electricity costs will be low. The generation costs have gone up because of rising costs of natural gas for combined cycle gas turbine plants. Newer plants will incorporate hydrogen co-firing capability and the plant operators will be injecting up to 5% hydrogen into the fuel mix for some “green credentials”. The generation costs will be higher with hydrogen as it’s more expensive than natural gas.

      Like or Dislike: Thumb up 2 Thumb down 3
    • Dah Menang Semua on Dec 27, 2024 at 2:42 pm

      Lucky haven’t buy EV
      rugi RV rugi Electric

      Like or Dislike: Thumb up 7 Thumb down 4
      • alihms on Dec 30, 2024 at 8:48 pm

        I’m lucky, lucky, very lucky. I’ve bought and EV and installed solar panels. Saved from future TNB bills hike and petrol subsidy reduction.

        Like or Dislike: Thumb up 1 Thumb down 0
        • Dah Menang Semua on Jan 02, 2025 at 3:28 pm

          Lucky haven’t buy solar panel
          Gomen now U-turn Electric

          Like or Dislike: Thumb up 0 Thumb down 1
    • Pro-Palestine on Dec 27, 2024 at 2:55 pm

      Since when Malaysia depends on coal? Lol. You have watched too much western news. You’re not very bright are you. We use mostly Gas to power up

      Like or Dislike: Thumb up 3 Thumb down 5
      • ResearchGate on Dec 31, 2024 at 7:03 pm

        Check your facts kiddo
        Every IPP producing above 2000mW are Thermal Coal Plant

        Like or Dislike: Thumb up 1 Thumb down 0
    • Kea Was on Dec 27, 2024 at 4:48 pm

      And the best is they destroy the environment, its people & pocket with no shame milking money doing it.

      Like or Dislike: Thumb up 0 Thumb down 1
    • What is the alternative?

      Like or Dislike: Thumb up 0 Thumb down 0
    • Plain BS on Dec 28, 2024 at 12:25 am

      Coal? Even after all that LSS solar projects? Or you mean coz we reduce reliance on coal now that 14% Price Hike is to pay for these alternative energy crony projects?

      Basically rakyat of all segments are screwed except businessowners who will pass on as business cost and charge customers higher prices. So it is double whammy for the regular rakyats.

      Like or Dislike: Thumb up 3 Thumb down 0
  • 241N10606 on Dec 27, 2024 at 12:43 pm

    Gaji naik 8% tapi tarif elektrik naik 14% this is what happens when undi pkr dapat zahid, undi bn dapat anwar bercukurlah masih aman

    Like or Dislike: Thumb up 8 Thumb down 0
    • hazri on Jan 03, 2025 at 12:45 pm

      so if PN gov still in power, you thing will be no 14% hike? imagine, not just 14% hike, you will get gst, the highest oil and chicken price, not to mention no telur in market. you ok?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Peppa on Dec 27, 2024 at 1:09 pm

    Well it seems like this will affect BEV sales

    Like or Dislike: Thumb up 1 Thumb down 0
  • Penipu bagitahu kalau bagi peluang, semua barang turun harga. Tak turun pun tak apa, tapi semua naik!

    Like or Dislike: Thumb up 4 Thumb down 0
    • hazri on Jan 03, 2025 at 12:48 pm

      you know since when all price increasing? since PN gov take over, please dont blame covid. the highest oil and chicken price is during PN gov. then what happened after that is all ready made food increase price. during PN gov, bukan kata beras tempatan, telur pun tak ada.

      Like or Dislike: Thumb up 0 Thumb down 0
  • kingkong on Dec 27, 2024 at 5:25 pm

    Blardy madani vultures.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Looks like PMX forced them to U-turn, lol.

    Like or Dislike: Thumb up 1 Thumb down 0
  • EV adopters kena con already.

    Like or Dislike: Thumb up 9 Thumb down 1
  • A good time to buy an electric car then.

    Like or Dislike: Thumb up 1 Thumb down 2
  • YB Albert on Dec 27, 2024 at 8:46 pm

    Medical insurance,TNB,cukai pintu,car spare parts,Ron 95 all jacking up costs of living at break neck speed in 2025.
    The question rakyat asks…if GLCs n local councils did not encounter huge deficits,why jack up rates even tho it is time for revision?
    PMX,cant u postpone the increase ?
    Rakyat still hasnt recovered from the pandemic crisis…economic wise.
    Make no mistake…the rich and super rich dont give a damn over increases,but the lower rung of society are driven into more difficulties trying to put food on the table.
    Dont test the resolve of the rakyat.GE 16 might see regime change.
    Lets have a win win situation.Not Madani winner take all.

    Like or Dislike: Thumb up 5 Thumb down 0
  • ROTI CANAI on Dec 27, 2024 at 11:47 pm

    cakap nak promote ev, then do this

    Like or Dislike: Thumb up 7 Thumb down 1
  • Sohai on Dec 28, 2024 at 3:40 pm

    Bye bye EV… ICE is better

    Like or Dislike: Thumb up 7 Thumb down 1
  • Proton oh Proton on Dec 30, 2024 at 12:12 pm

    Time to install Solar panels

    Like or Dislike: Thumb up 0 Thumb down 4
 

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