What is the new average base tariff rate per kWh for RP4?

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The new average base tariff rate for RP4 is 45.40 sen/kWh.

The new electricity tariff schedule, effective from July 1, 2025, to December 31, 2027, under the Incentive-Based Regulation (IBR) framework, sets the average base tariff rate for the Regulatory Period 4 (RP4) at 45.40 sen per kilowatt-hour (kWh). This rate represents a slight decrease from the 45.62 sen/kWh that was approved in December 2024. Overall, this reflects a reduction of up to 19 per cent in the average electricity tariff when compared to the previous RP3 period.
Impact on Domestic Consumers

This revised tariff structure is expected to benefit a significant portion of domestic consumers, with approximately 85 per cent of account holders anticipated to experience either the same or lower electricity rates. This positive outcome is contingent upon their monthly electricity usage not exceeding 1,000 kilowatt hours. The Ministry of Communications, through its spokesperson Datuk Fahmi Fadzil, highlighted this initiative as a key reform demonstrating tangible benefits for the public.
Alignment with National Energy Transition Roadmap

The implementation of this new tariff schedule is directly linked to broader governmental reforms within the national energy sector. It aligns with the objectives of the National Energy Transition Roadmap (NETR), which aims to increase the utilisation of renewable energy sources and achieve a reduction in carbon emissions by the year 2050. This coordinated effort involves multiple government bodies, including the Ministry of Energy Transition and Water Transformation (Petra) and the Energy Commission (ST), alongside Tenaga Nasional Berhad.
Regulatory Framework and Tariff Components

The tariff determination for RP4 operates under the established Incentive-Based Regulation (IBR) framework, as stipulated by Section 26 of the Electricity Supply Act 1990. The changes in electricity tariffs for this period encompass a restructuring of three core components: the average base tariff rate, the new tariff schedule itself, and the mechanism for fuel cost adjustments. The Energy Commission (ST) announced that over 23.6 million domestic users in Peninsular Malaysia are set to benefit from these more progressive rates.

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What is the new average base tariff rate per kWh for RP4?

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