Budget 2024: Electricity rebate up to RM40 per month to continue for hardcore poor

KUALA LUMPUR- The government agrees to continue giving electricity bill rebates of up to RM40 per month to hardcore poor households.

Prime Minister Datuk Seri Anwar Ibrahim said the allocation of RM55 million would benefit and reduce the burden of the low-income group.

“Blanket electricity subsidies are burdensome and benefit the rich. In 2022, the trend shows that 10 per cent of customers with the highest electricity consumption will enjoy 50 percent of the subsidy, while 50 per cent of customers with the lowest electricity consumption will only enjoy 10 percent of the subsidy provided.

“That is why, starting this year, the government has implemented targeted subsidies by releasing part of the subsidy for the highest 10 percent of electricity consumption but, at the same time, maintaining the same subsidy for 90 percent of consumers.

“This targeted approach has been able to save more than RM4.6 billion ringgit from the projected electricity subsidy of 20 billion ringgit. However, the government still bears an electricity subsidy of 16 billion ringgit for 2023, especially for home users and micro, small, and medium entrepreneurs," he said when tabling the Budget 2024 today.

Anwar said that the government would continue to improve the targeted electricity subsidy approach according to the level of electricity consumption.

He hoped that the decision would give consumers the right signal to practice energy efficiency and economic practices in their daily electricity use.

The government also agreed to exempt electricity bill account deposit payments in an individual’s own name, he added.