Regulatory Period (RP4) for Tenaga Nasional Berhad (TNB) January 2025 to December 2027 under the Incentive-Based Regulation (IBR) Framework: Malaysia’s Electricity Tariffs Reform

9 July 2025
  • It is commendable that the electricity market reform is a bold step towards transparency, energy sustainability, cost-reflective while encouraging energy efficiency. The introduction of AFA, simplification of tariff categories, and itemised charges were long-standing proposals from the industry groups to bring Malaysia closer to international norms.
     
  • That said, more public disclosure is a must – publish clear information on how the base tariffs are derived, what assumptions go into AFA calculations, the structure and intended outcomes of the EEI, and the distribution of subsidies across user groups.
     
  • The Energy Commission and relevant ministries should consider to broaden the eligibility of the EEI, especially for productive low-voltage users, and ensure regular updates on the impact and adjustments of AFA.
     
  • As the energy market moves toward liberalisation under MESI 2.0, these reforms must strike a balance between cost sustainability, fairness, and economic competitiveness. Transparent, equitable pricing, backed by clear communication and robust data, is not just a regulatory necessity but a strategic imperative for industrial resilience and sustainable development.

Additional Info

  • Download EN Full: Download EN Full
  • Banner: Banner