Tenaga Nasional Berhad (TNB) has officially announced the base electricity tariff for the fourth regulatory period (RP4), spanning from 2025 to 2027. According to documents filed with Bursa Malaysia on December 26, the new tariff will be set at 45.62 sen per kilowatt-hour (kWh). This marks an increase from the current base tariff of 39.45 sen per kWh, which has remained unchanged since 2014 under the third regulatory period (RP3).

The updated tariff is expected to take effect on July 1, 2025, signaling a potential rise in electricity bills for consumers. However, the current RP3 tariff will continue to apply until June 30, 2025.

TNB emphasized that the implementation of RP4 aligns with the governments commitment to the Incentive-Based Regulation (IBR) framework. In a statement reported by Business Today, TNB highlighted the importance of IBR in maintaining the sustainability and stability of the electricity supply industry.

"It provides a transparent regulatory framework that promotes cost efficiency and ensures the financial and operational sustainability of the system and the industry," TNB stated.

The IBR framework plays a crucial role in balancing cost efficiency with the operational demands of the electricity sector, ensuring long-term benefits for both consumers and the industry.

While the RP4 tariff marks a significant shift for the future, the government has assured that electricity prices in Peninsular Malaysia will not increase during the first half of 2024. To maintain this stability, the government has allocated RM2.388 billion in electricity subsidies for the first six months of the year.

This measure reflects the governments continued efforts to shield consumers from rising energy costs in the short term while preparing for the transition to the RP4 period.

Source: Business Today