KUALA LUMPUR: The Malaysian government is set to make a final decision on the proposed 14% increase in electricity tariffs under the regulatory period 2025-2027 (RP4) by mid-2025. In the meantime, current electricity rates and tariff structures will remain unchanged in Peninsular Malaysia.
Officials from Tenaga Nasional Bhd (TNB) have indicated that the base tariff rate is expected to rise to 45.62 sen per kilowatt-hour in the RP4 period. This increase is driven by anticipated price hikes of 24% in coal and 34% in liquefied natural gas (LNG) over the three-year period.
However, the final tariff rate, to be determined by the government, could vary depending on various factors. TNB’s Chief Financial Officer, Datuk Nazmi Othman, emphasized that the government aims to protect consumers, with 85% of households likely to see no change in their electricity bills during RP4.
Currently, around 70% of the base tariff rate is linked to power generation, which is heavily influenced by fuel prices such as coal and LNG. Notably, over 50% of Malaysia’s generation capacity relies on coal, while LNG accounts for about 20%.
In its latest announcement, TNB revealed that the approved capital expenditure (capex) for RP4 is RM42.821 billion. This includes RM26.554 billion for base capex and RM16.267 billion for contingent capex. The planned investments are expected to deliver substantial economic benefits, supporting the country’s energy transition agenda and strengthening the national electricity network.
Additionally, TNB’s operating expenditure (opex) for RP4 is set at RM20.782 billion, aimed at maintaining and upgrading TNB’s electrical infrastructure.
Following the announcement, TNB’s shares surged by 68 sen, or 4.80%, to RM14.86, pushing its market capitalization to RM86.38 billion by 3:03 PM. The stock has appreciated by over 48% so far this year.
