Government raises electricity bill protection threshold to 800 kWh until year-end

The government has raised the electricity bill protection threshold for domestic users from 600 kWh to 800 kWh a month, allowing more households to continue enjoying exemptions from several additional charges on their electricity bills. The temporary measure will apply to electricity consumption from September until 31 December 2026.

Prime Minister Anwar Ibrahim announced the change following concerns over higher electricity bills faced by some households in recent months. He said the recent haze and hotter weather had led to increased electricity consumption, particularly from heavier use of air conditioning, causing some households to exceed the previous 600 kWh threshold.

Under the new 800 kWh threshold, eligible domestic users will continue to be exempt from the Automatic Fuel Adjustment (AFA), a surcharge linked to fuel costs, as well as the RM10 monthly retail charge (Caj Peruncitan) and the 8% Sales and Service Tax (SST).

Previously, these exemptions only applied to households using up to 600 kWh of electricity a month. Once their consumption exceeded that threshold, the additional charges would apply to their electricity bills. By raising the threshold to 800 kWh, households now have an additional 200 kWh of monthly electricity consumption before these charges apply.

Bear in mind this is a temporary measure that runs until the end of December, rather than a permanent change. The government says it will keep monitoring fuel costs and energy market conditions when weighing up any future decisions on electricity tariffs, balancing affordability against keeping supply steady and the energy sector sustainable.

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