Starting in the first six months of 2024, high electricity consumption households, along with commercial and industrial (C&I) users in the Kulim Hi-Tech Park (KHTP) located in Kedah, Malaysia, will experience a surcharge of 6.5 sen per kilowatt-hour (kWh) on their electricity tariffs. This rate is higher than the 5.39 sen per kWh surcharge imposed on C&I users in KHTP in the second half of 2023.
The surcharge will apply to households and C&I users when their monthly electricity usage exceeds 1,500 kWh. Users with consumption below this threshold will not see any changes in their tariffs, as no surcharge will be imposed on them.
In Labuan, a higher surcharge of 7.21 sen per kWh will be applied to high-consumption households and C&I electricity users, up from 2.11 sen per kWh in the second half of 2023.
Notably, certain categories will be excluded from the surcharge, including low-consumption households, low-voltage C&I users (micro, small, and medium enterprises under categories CM1 and ID1), as well as water and sewerage service providers.
This adjustment aligns with the Energy Commission’s (EC) announcement on the introduction of surcharges for high-consumption households as part of the imbalance cost pass-through (ICPT) adjustment. The government’s aim is to target subsidies more effectively, and approximately 99% of users in Sabah, Labuan, and KHTP will not be affected by these adjustments.
To fund electricity subsidies for users in Sabah and Labuan for the first half of 2024, around RM161.7 million has been allocated, with an additional RM730,000 designated for KHTP consumers.
These tariff adjustments are part of ongoing efforts to ensure that subsidies are directed to those who need them most and encourage more responsible electricity consumption.