SHAH ALAM – Malaysia’s electricity supply remains stable and secure despite rising global energy uncertainty triggered by geopolitical tensions in the Middle East.
Energy Transition and Water Transformation (Petra) Minister Datuk Seri Fadillah Yusof said the country’s power supply system is not affected by the current global developments.
In a statement issued yesterday, he said the ministry is closely monitoring the geopolitical crisis in West Asia, particularly following Iran’s closure of the Strait of Hormuz on March 2, which has disrupted global energy markets.
“However, these developments do not affect the current availability and security of Malaysia’s electricity supply,” he said.
Fadillah who is also the Deputy Prime Minister said electricity generation in Peninsular Malaysia relied mainly on natural gas, which remained stable due to domestic sources.
He added that the electricity generation system in Peninsular Malaysia used around 40 per cent to 45 per cent natural gas as its main fuel and most of the gas supply was obtained from domestic sources in Kerteh, Terengganu as well as the Thailand–Malaysia Joint Development Area.
“Therefore, domestic gas supply is currently stable and sufficient to support power generation plant operations,” he said.
On electricity tariffs, he said the government remained committed to protecting consumers from global fuel price fluctuations through the Incentive Based Regulation framework under Regulatory Period 4, which runs from 2025 to 2027.
He said under this mechanism, fuel cost changes such as gas and coal prices were adjusted through the Automatic Fuel Adjustment mechanism every month based on actual market costs.
At present, he said domestic consumers who used not more than 600 kilowatt-hours of electricity per month were fully exempted from fuel cost adjustments.
“As a result, about 85 per cent of domestic consumers nationwide will not be affected by fluctuations in international fuel prices, providing stability to household spending,” he said.
He added that based on current developments, the Automatic Fuel Adjustment rate is expected to remain at a rebate level until April 2026.
However, he said the rate could change in the following months if global fuel prices continued to increase and tensions in West Asia persist.
Since July 2025, the government has provided RM2,506 million in subsidies through electricity bill rebates as part of energy efficiency incentives.
The government is also reviewing additional mitigation measures should the conflict in West Asia prolong and place excessive pressure on fuel costs.
Fadillah said Petra will continue to act proactively to balance national energy security with consumer affordability to ensure electricity tariffs remain reasonable.
He said consumers are also encouraged to practise efficient electricity use as part of collective efforts to strengthen the sustainability of the national energy system.
“Energy-saving practices not only help reduce individual monthly electricity bills but also represent a meaningful contribution by the public in strengthening the sustainability of the country’s energy system,” he added.
Global energy markets have been shaken by rising tensions in the Middle East after military strikes and retaliatory actions involving Iran escalated in late February.
Iran later declared the Strait of Hormuz closed, a critical maritime route that carries about one-fifth of the world’s oil supply, causing oil prices to surge and raising concerns over global fuel supply disruptions.