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Electricity Subsidy Threshold Expanded to Households Using up to 800kWh
The subsidy covers retail charges and Sales and Service Tax for households using up to 800 kWh a month, easing higher bills from haze and hotter weather.
On Thursday, Prime Minister Datuk Seri Anwar Ibrahim announced an expansion of domestic electricity bill subsidies, raising the protection threshold from 600 kWh to 800 kWh per month through December 31, 2026.
Rising temperatures and haze pushed household electricity consumption beyond the previous 600 kWh limit, exposing users to the Automatic Fuel Adjustment mechanism introduced July 1, 2025, while approximately 80 percent of domestic users typically consume under that threshold.
Under the measure, users consuming up to 800 kWh monthly receive complete exemptions from the Automatic Fuel Cost Adjustment, retail charges, and Sales and Service Tax; September's surcharge stands at 3.67 sen per kWh as fuel costs remain elevated.
Following a special meeting at the Treasury Building in Putrajaya on September 17, the Madani government coordinated implementation with Deputy Prime Minister Datuk Seri Fadillah Yusof, Tenaga Nasional Berhad, the Energy Commission, and the Ministry of Finance.
Anwar, who is also Finance Minister, said the government will continue monitoring fuel costs and energy market conditions to balance electricity affordability, supply security, and energy sector sustainability in future tariff decisions.