Are you all set for the 2025 electricity tariff hike?
Tenaga Nasional Bhd (TNB) has just announced a 14.2% increase in the basic electricity tariff for Peninsular Malaysia, bringing it to 45.62 sen per kilowatt hour (kWh) effective July 1, 2025.
The increase is part of TNB’s new strategy to ensure reliable electricity supply, with an allocation of RM42.82 billion for capital expenditure (capex) to strengthen the transmission and distribution network.
While the decision may have angered consumers, TNB stressed that this is a necessary step to address rising fuel costs and maintain the stability of the country’s energy supply.
The company stressed that any changes in generation costs will be passed on through the imbalance cost pass-through (ICPT) mechanism, ensuring there will be no major impact on its financial operations.
However, with operating expenses increasing to RM20.78 billion compared to RM17.69 billion in the previous period, the question that arises is to what extent will consumers feel the impact of this increase in an increasingly challenging economic environment, with taxes and prices of goods continuing to soar?
In the meantime, TNB remains ‘neutral’, believing that this tariff increase will not have a major impact on the company’s financial position.
However, with a gain of over 40% in its shares this year, is TNB truly looking after the interests of consumers, or is this just a move to strengthen their financial position?
