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KUALA LUMPUR – The government is considering a new electricity tariff structure based on consumption, with data centres and industries potentially facing different rates from domestic consumers next year, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Energy Transition and Water Transformation Minister, said the Energy Commission (EC) had been tasked with conducting a detailed study next year to encourage more efficient energy consumption.
"One of the approaches being considered is a user-pay basis, whereby those who consume more energy, particularly data centres and industries, will be charged different rates compared to domestic consumers.
"This is to ensure fairer electricity tariffs, particularly to protect domestic consumers,” he said during Question Time in the Dewan Rakyat today.
He was responding to a supplementary question from Azli Yusof (PH-Shah Alam) on the government’s plans to review the exemption for electricity consumption of up to 800 kilowatt-hours (kWh) after Dec 31, 2026.
Fadillah said that although electricity generation costs had risen following the West Asia crisis, the government had assured domestic consumers using less than 600 kWh a month that they would be protected from higher costs.
The threshold was subsequently raised to 800 kWh.
"To encourage more efficient energy use, we have introduced several initiatives, including ‘time of use’, which offers lower rates during certain periods, as well as the RM40 electricity bill rebate for hardcore poor households, supported by an allocation of RM55 million for 2026,” he said.
He added that the government had allocated RM150 million for the SuRIA Home programme, which offers a rebate of RM600 per kilowatt of alternating current (kWac) for residential solar installations, capped at RM3,000 for systems of up to five kWac.
The programme targets between 45,000 and 50,000 households, particularly those in the M40 income group and some in the B40 group who can afford to install solar systems at home.
The government has also introduced the NUR MADANI programme, which offers a RM200 rebate to individuals purchasing energy-efficient air-conditioners and refrigerators rated four or five stars.
"We have implemented many approaches, but more importantly, we are fine-tuning a new approach next year to ensure electricity tariffs are more closely based on consumption, with different rates for domestic consumers and industries, and a different approach for those who consume more energy.
"We hope this will ensure a fairer system that is better suited to the circumstances we will face in the coming years,” he said. -BERNAMA
