Now Reading
Anwar Says No Electricity Tariff Increase, Yet

Anwar Says No Electricity Tariff Increase, Yet

We know it’s not a 14% electricity tariff increase but…

Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.


While the current US president Donald Trump is busy issuing tariffs left and right, Malaysia has its tariff drama too.

Previously, Malaysiakini reported that the electricity tariff will be increased up to 14% starting from the second half of the year.

Anyway, the report turned out to be partially incorrect and has been amended, but as we all know, anger spreads faster than the truth and fact.

via GIPHY

So what happened actually?

Prime Minister Datuk Seri Anwar Ibrahim said his previous statement about hiking the electricity tariff was taken out of context.

His previous statement then was a response to Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal, who questioned why the government was flip-flopping on the electricity tariff issue.

In his response at the time, he said the tariff must go up because the small tax increase levied on companies can help improve the country’s education system and support the poor.

Small, small, don’t worry.

Prime Minister Datuk Seri Anwar Ibrahim

Speaking at the Dewan Rakyat recently, Anwar then clarified that 85% of households would not be affected by the hike and the tariff would not burden businesses.

However, he also said the electricity tariff hike will be based on the imbalance cost pass-through mechanism (ICPT), which adjusts electricity rates based on actual fuel cost fluctuations which is reviewed every six months.

Currently, more than 85% of households still receive subsidies for electricity. The next tariff review is scheduled for July 2025.

TLDR: The electricity tariff hike is still the plan but the exact rate will be decided later. The tariff increase will not affect low-income households, 85% of households will still receive subsidies, and businesses won’t be affected greatly.

Needless to say, netizens are still wary and unhappy with the recent clarification about the electricity tariff increase. If you’re confused by the statements, you’re not alone.

Similar to other taxes like GST and SST, people believe the cost will still be passed onto consumers.


Share your thoughts with us via TRP’s FacebookTwitterInstagram, or Threads.

Get more stories like this to your inbox by signing up for our newsletter.

© 2024 The Rakyat Post. All Rights Reserved. Owned by 3rd Wave Media Sdn Bhd