Government plans user-pays electricity pricing for large consumers
Rates, consumption thresholds and the implementation timetable remain unannounced, while an extension of household bill relief has not been confirmed.
The government plans to introduce electricity pricing based on a “user-pays” approach for major consumers, including data centres and industries with heavy energy needs, to protect households from higher power costs, Datuk Seri Fadillah Yusof said.
The Deputy Prime Minister and Energy Transition and Water Transformation Minister told the Dewan Rakyat that businesses consuming large amounts of electricity should shoulder a fairer portion of supply costs. Rates, qualifying consumption levels and a timetable for implementation have not been announced.
Fadillah was answering a question from Shah Alam Member of Parliament Azli Yusof (Pakatan Harapan-Amanah) on household bills and tariff affordability. Existing rules already distinguish domestic from non-domestic tariffs, with the latter classified by supply voltage. Fadillah did not explain what would change under the proposal.
Azli also sought clarification on whether bill relief for households consuming up to 800 kWh monthly would continue beyond Dec 31. Fadillah reiterated the government's commitment to affordability and reliability without confirming an extension. The relief covers consumption during September through December 2026, exempting eligible households from service tax, retail charges and the automatic fuel adjustment (AFA) surcharge.
Fadillah attributed increases in some household bills to global fuel price rises, greater air-conditioning use during prolonged heat and lower output at some power plants. He said reduced hydropower output and scheduled coal-plant shutdowns had increased dependence on imported liquefied natural gas, pushing up generation costs.
He also encouraged eligible households to move activities such as electric-vehicle charging to lower-priced periods under time-of-use tariffs. Weekday peak pricing applies from 2pm to 10pm; other weekday hours and weekends are off-peak.
