The ministry said the government made the decision on Dec 13 to safeguard the well-being of the public by continuing targeted electricity subsidies for domestic consumers.

A total of RM2.388 billion has been allocated for electricity subsidies during this period, Bernama reported.

“The ministry believes that the implementation of targeted electricity subsidies is the best approach to reduce the government’s subsidy commitment so that the allocation can be channelled in other forms of assistance to the people,” it was quoted as saying in a statement today.

It said the initiative will help the government improve infrastructure, healthcare, and education.

In June, the ministry announced continued rebates for domestic consumers: two sen per kilowatt-hour (kWh) for 6.9 million users, no changes for those using between 600-1,500 kWh, and 10 sen/kWh for users exceeding 1,500 kWh.

However, it said the energy commission is finalising a new tariff schedule that reflects the true cost of electricity supply while ensuring competitiveness and balancing security, sustainability, and affordability

This new tariff schedule is expected to take effect on July 1, 2025, with an estimated financial impact of RM3.57 billion, funded by the government.

The ministry also said the government has agreed to set the average basic electricity tariff rate for Tenaga Nasional Bhd under the Incentive-Based Regulation framework for the Fourth Regulatory Period, running from Jan 1, 2024 to Dec 31, 2027.

In parallel, it said, the government has reiterated its commitment to supporting low-income households through the RM40 Electricity Rebate Programme, aimed at those in the hardcore poor category registered in the e-Kasih System.

A total of RM55 million has been allocated for this initiative.

“Eligible users can check their eligibility status on the website or visit the nearest utility store, or see the amount of electricity subsidy in their monthly electricity bill,” it said.