Energy Crisis Ripple Effect Hits Electricity Bills as Fuel Costs Rise

The global energy supply disruption is causing ripple effects on various energy sources beyond petrol prices. Economy Minister Akmal Nasrullah Mohd Nasir said that the impact of rising fuel costs is being felt by consumers who use more than 600 kilowatt-hours (kWh) of electricity per month.

According to Bernama, Akmal stated that the most significant impact was initially seen on petrol prices last March. However, it has since spread to other energy supplies, including natural gas and coal.

The Automatic Fuel Cost Adjustment (AFA) mechanism is used to adjust electricity rates for higher-consumption users based on fluctuations in global fuel costs. Akmal noted that changes in natural gas prices typically take three to four months to filter through to electricity tariffs.

Despite the pressure from rising fuel costs, Akmal assured that the existing tariff structure continues to shield most smaller domestic consumers from direct increases. However, he also mentioned that Prime Minister Datuk Seri Anwar Ibrahim will chair a special meeting to review the tariff situation and consider measures to ease the burden on the public.

Akmal also touched on the prevailing weather conditions, which could indirectly contribute to higher daily energy consumption. He stated that remaining indoors or in safer places during unfavorable weather can lead to increased energy consumption.