Fadillah: Govt reviewing electricity tariff adjustment for Kulim Hi-Tech Park to align with scheduled Peninsular Malaysia hike

• “The government will consider allowing them [including industry players at KHTP] to apply for the new electricity tariff to be implemented simultaneously with the rest of Peninsular Malaysia in July — we are evaluating this due to its financial cost implications.”

KUALA LUMPUR (Feb 19): The government is reviewing the possibility of aligning electricity tariff adjustments at Kulim Hi-Tech Park (KHTP) in Kedah with the scheduled tariff hike across Peninsular Malaysia — which is set to take effect in July, said the Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof. (pictured)

“The government will consider allowing them [including industry players at KHTP] to apply for the new electricity tariff to be implemented simultaneously with the rest of Peninsular Malaysia in July — we are evaluating this due to its financial cost implications,” he told the Dewan Rakyat on Wednesday while wrapping up the debate on the motion of thanks for the royal address.

Fadillah, who is also the deputy prime minister, highlighted that the electricity tariff structure has been reviewed every three years since 2014, and industry "players are well aware of this regulatory practice".

Fadillah was responding to a supplementary question raised during the winding-up session regarding the short notice given to KHTP tenants about the recent electricity tariff hike, which left businesses little time to adjust.

The minister added that the ministry and the Energy Commission are currently finalising the proposed new tariff schedule, which will reflect the input gathered from stakeholder engagement sessions held on Jan 13 and Feb 5 this year.

“The government assures that the electricity tariff determination for both Peninsular Malaysia and KHTP will take into account all factors, including the welfare and well-being of the public. This is to ensure that 85% of domestic users in Peninsular Malaysia, as well as micro, small and medium enterprises (MSMEs), continue to receive protection,” he said.

KHTP’s electricity supply is managed by NUR Power Sdn Bhd, a private utility company with exclusive rights to generate and distribute electricity within the park. Industrial tenants at KHTP do not receive electricity from Tenaga Nasional Bhd (TNB) (KL:TENAGA).

Earlier this month, local media reported that businesses at KHTP were outraged over a sudden tariff increase, warning that it could stifle investments and reduce Malaysia’s attractiveness to high-tech industries.

As of Jan 1, electricity costs for companies at KHTP had surged by up to 21% due to the revised base tariff and higher imbalance cost pass-through (ICPT). The new base tariff for NUR has been fixed at 43.26 sen, with tenants only receiving notice of the hike on Dec 31, 2024, a day before it was enforced.

In Peninsular Malaysia, the base electricity tariff has been set at 45.62 sen per kilowatt-hour for the 2025-2027 Regulatory Period 4 (RP4), according to TNB. Under Malaysia’s incentive-based regulation framework, the base tariff is reviewed every three years, considering fuel costs and expenditure needed to expand or maintain the power grid.

Final tariffs paid by consumers are adjusted every six months through the ICPT mechanism, which results in either a surcharge or rebate on top of the base tariff. The actual rates depend on user categories, such as residential, and low-, medium- or high-voltage commercial and industrial customers.

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