Global energy shock spreads to Malaysia

Energy supply disruptions that started with petrol prices in March are now hitting natural gas and coal, pushing up electricity generation costs across the region.

Three month lag before impact hits

Natural gas price increases typically take three to four months to flow through to electricity tariffs, meaning bills today reflect fuel costs from July and August.

“The lagging effect of the energy supply disruption, which began with petrol, is now increasingly being felt in other energy sectors”

Heavy users hit hardest

Consumers using more than 600 kilowatt-hours monthly face direct tariff increases through the Automated Fuel Adjustment mechanism that reflects current fuel prices.

Most small users still protected

The current tariff structure shields most domestic consumers using below 600 kilowatt-hours per month from fuel cost increases, keeping their bills unchanged.

“Under the existing tariff structure, the tariff for those using below 600 kWh per month remains unchanged”

Prime minister to review tariffs

Prime Minister Anwar Ibrahim is convening a special meeting to reassess electricity tariffs and explore ways to reduce the burden on consumers facing higher costs.

Weather worsens energy demand

Unfavourable weather conditions are driving up daily energy consumption as people stay indoors longer, adding pressure to electricity usage and costs.

What's driving the price spike

Global disruptions to natural gas and coal supplies have pushed fuel prices higher worldwide, and Malaysia's electricity system passes these costs through to consumers on a delayed schedule.