Govt Raises Subsidised Electricity Threshold From 600kWh To 800kWh Until December 2026

In a swift response to rising public concerns over soaring utility bills, the Madani government has officially intervened following a high-level special meeting in Putrajaya.

Prime Minister Datuk Seri Anwar Ibrahim announced on Facebook an enhancement to domestic electricity bill subsidies, expanding the protection tier from the previous 600 kWh limit to 800 kWh per month, effective for electricity consumption starting from September through to 31 December 2026.

Rising temperatures and haze push households over previous limits

Addressing the root cause of the surging bills, the Prime Minister  noted that while approximately 80 percent of domestic users typically consume under 600 kWh per month and remain protected, recent environmental factors have shifted energy consumption patterns.

“However, the haze and hotter weather conditions recently have driven an increase in electricity consumption among some households, causing their monthly usage to exceed the 600 kWh level and thus become subject to the Automatic Fuel Adjustment (AFA),” the Prime Minister explained.

Comprehensive exemptions for users up to 800 kWh

To alleviate this pressing financial pressure on the nation, Anwar said  the newly expanded protection ensures that domestic consumers utilising up to 800 kWh of electricity per month are granted complete exemptions. This relief covers the AFA mechanism, Retail Charges, and the Sales & Service Tax (SST).

“Therefore, the Madani government will continue to closely monitor fuel cost trends and the current energy market situation to ensure that any decisions regarding electricity tariffs strike a balance between the people’s affordability and cost of living, the security of electricity supply, and the sustainability of the nation’s energy sector.” he said.

Special Cabinet and agency meeting leads to immediate action

According to Kosmo!, the decisive policy shift follows a special meeting held at the Treasury Building in Putrajaya yesterday (17 September), which was chaired by Anwar himself and lasted nearly an hour.

The critical discussion brought together key leaders, including Deputy Prime Minister and Minister of Energy Transition and Water Transformation (PETRA) Datuk Seri Fadillah Yusof, alongside top management from Tenaga Nasional Berhad (TNB), the Energy Commission (Suruhanjaya Tenaga), and the Ministry of Finance (MoF).

The emergency consultation was triggered by mounting public anxiety regarding unexpected spikes in household electricity bills, which were exacerbated by the implementation of the AFA mechanism.

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