Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

Last month, it was reported that the base electricity tariff in Peninsular Malaysia will be raised from the current 39.95 sen/kWh to 45.62 sen/kWh in July 2025, along with a new tariff schedule in July 2025. Now, prime minister Datuk Seri Anwar Ibrahim has come out to say that it’s not true.

However, the PM says that electricity tariffs is expected to be raised by the second half of the year, with the rate to be determined after a revision, which will be based on capacity and price for a set period. Basically, it will go up, but perhaps not exactly at 14%.

“About the Imbalance Cost Pass-Through (ICPT), it won’t be 14%, no! The revision every six months is based on the current rate. So I don’t think that it will be something that overburdens the community,” Anwar said at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) CNY event in KL yesterday, reported by Astro Awani.

“But it sure is not what is being said. That’s why I just checked with Zafrul (MITI minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz) to see if I got it wrong,” he added.

Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

It was reported that the base electricity tariff will be raised from 39.95 sen/kWh to 45.62 sen/kWh (+14.2%) come July 2025, along with a new tariff schedule.

The 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.

Tenaga Nasional Berhad (TNB) told Bursa Malaysia 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.

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 ICPT mechanism.

So, it’s not a matter of will it go up, but by how much. This will be of interest to EV owners who have ‘transferred’ their fuel costs to their TNB bill. The current highest tariff is 57.1 sen per kWh. We’ll see.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • ROTI CANAI on Feb 04, 2025 at 11:58 am

    ask u buy ev, then naik harga. syabas janji dicapati

    Like or Dislike: Thumb up 7 Thumb down 0
    • But at least EV is still worth than owning petrol cars, not only petrol cars also affected by electricity tariff but also petrol subsidy reduction too

      Like or Dislike: Thumb up 10 Thumb down 5
  • Tin Kosong on Feb 04, 2025 at 12:38 pm

    Tak naik… tp kita akan naik kan jugak nnt… tu la formula kita

    Like or Dislike: Thumb up 10 Thumb down 0
  • Bob Mal on Feb 04, 2025 at 1:07 pm

    Well this is basically the game of the government announced it at inflated price but the actual cost far less so they are to be seen as a good guy.

    However also quite smart to give 0% EV tax so many people have changed to EV and they who now need to charge at home or outside will definitely need to braced for higher cost and don’t even dream of getting any targeted subsidy.

    Like or Dislike: Thumb up 5 Thumb down 0
    • But still, EV is worth to own than owning petrol cars, not only petrol cars also affected by electricity tariff but also petrol subsidy reduction too

      Like or Dislike: Thumb up 9 Thumb down 4
  • Ben Yap on Feb 04, 2025 at 1:45 pm

    Spin, bro…kasi spin lagi.

    Like or Dislike: Thumb up 6 Thumb down 0
  • Meleisian on Feb 04, 2025 at 2:17 pm

    Loving these u-turns! Gomen no backbone always buckle under pressure. Takut kalah undi. We have to unite and pressure gomen to maintain ron95 subsidy

    Like or Dislike: Thumb up 7 Thumb down 4
    • Kea Was on Feb 05, 2025 at 10:04 am

      Problem is both the government also want to abolish RON95 subsidy just one talk about comparing BMW & Kancil the current upgraded to Rolls Royce.

      Like or Dislike: Thumb up 7 Thumb down 1
      • Rakyat Malaysia on Feb 05, 2025 at 11:49 am

        But the other Gomen give us BRIM and maintain other subsidies. This Useless Gomen (UG) is cutting all subsidies and causing rakyat Malaysia to suffer but all this only benefits rakyat luar negara. Looks like this UG is working for other countries and not us.

        Like or Dislike: Thumb up 6 Thumb down 2
        • Akmal ham cheese on Feb 05, 2025 at 8:27 pm

          You mean PMX cut our subsidies and use the money to build hospitals and schools in gaza? This is blasphemy!

          Like or Dislike: Thumb up 0 Thumb down 1
  • Rakyat Malaysia on Feb 04, 2025 at 3:44 pm

    14% hike – “Not true!” according to PMX
    25% hike – “Barulah betui!” according to PMX

    How much more can rakyat suffer under him? When can we do a Trump over PH gomen plox?!

    Like or Dislike: Thumb up 8 Thumb down 0
    • Trump on Feb 05, 2025 at 8:28 pm

      Do you have a prime minister candidate in mind? Current flock of politicians all kenot pakai

      Like or Dislike: Thumb up 0 Thumb down 2
      • Make Malaysia Great Again on Feb 06, 2025 at 1:57 pm

        Bring back PM Najib to relive our glorious period. America can do it, so can we.

        Like or Dislike: Thumb up 0 Thumb down 1
  • Janji Dicapati on Feb 04, 2025 at 6:16 pm

    Refer my name

    Like or Dislike: Thumb up 3 Thumb down 0
  • Nurul Izzah on Feb 04, 2025 at 6:16 pm

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 2 Thumb down 4
  • I dont get it. TNB made RM3 bilion not enough?

    Like or Dislike: Thumb up 5 Thumb down 0
  • Janakuasa Matahari on Feb 04, 2025 at 8:36 pm

    Pls raises electricity tariff asap coz T20 will never be affected their house premises all done fixed solar panels with hybrid batteries backup LOL

    Like or Dislike: Thumb up 5 Thumb down 1
  • Clark on Feb 05, 2025 at 6:48 am

    BUT?

    Like or Dislike: Thumb up 0 Thumb down 0
  • T20 bising on Feb 05, 2025 at 2:08 pm

    Those which can own EV car.. they are not poor. compare to VIVA/AXIA owner.. we chillax je.. but those M40 who pretend to be T20.. these are the one feeling the heat.

    Like or Dislike: Thumb up 0 Thumb down 0
    • But at least EV is still worth than owning petrol cars, not only petrol cars also affected by electricity tariff but also petrol subsidy reduction too

      Like or Dislike: Thumb up 10 Thumb down 4
 

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