Will 85% of households see lower electricity bills from July 2025?

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85 Per Cent of Domestic Consumers to Benefit from Stable or Lower Electricity Rates from July 1, 2025

Starting July 1, 2025, approximately 85 per cent of domestic consumers, or account holders, are anticipated to experience electricity rates that remain the same or even decrease. This favourable outcome is contingent upon their monthly electricity consumption not exceeding 1,000 kilowatt hours. This adjustment is a component of significant reforms within the national energy sector, aligning with the broader objectives of the National Energy Transition Roadmap (NETR).
New Tariff Schedule Reflects Energy Sector Reforms

The revised electricity tariff schedule, effective from July 1, 2025, to December 31, 2027, is underpinned by the Incentive-Based Regulation (IBR) framework. This framework is designed to encourage efficiency and reform within the energy sector. Communications Minister Datuk Fahmi Fadzil highlighted that these changes are a tangible demonstration of the government's commitment to implementing reforms that yield direct benefits for the populace, working in coordination with the Ministry of Energy Transition and Water Transformation (Petra) and the Energy Commission (ST).
Average Base Tariff Rate Sees Reduction

As part of the tariff determination for Regulatory Period 4 (RP4), the Average Base Tariff Rate has been established at 45.40 sen per kilowatt hour (kWh). This figure represents an overall reduction of up to 19 per cent in the average electricity tariff when compared to the preceding period, RP3. The ST confirmed that this updated schedule, approved by the government, will benefit over 23.6 million domestic users in Peninsular Malaysia.
Consumption Threshold for Benefit

The provision for enjoying the same or lower electricity rates applies specifically to domestic consumers whose monthly usage remains at or below 1,000 kilowatt hours. This threshold is a key factor in determining eligibility for the tariff benefits, ensuring that a substantial majority of households can anticipate stable or reduced energy costs under the new framework.

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Will 85% of households see lower electricity bills from July 2025?

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