MCA urges review of monthly power surcharge as fluctuating bills squeeze households, SMEs

 

RISING electricity bills are becoming harder to budget for as monthly fuel surcharge changes add uncertainty for families and businesses, said an MCA leader.

Its Economic and SMEs Affairs Committee chairman Datuk Ir Lawrence Low urged the government to review the Automatic Fuel Adjustment (AFA) mechanism, saying monthly electricity surcharge changes are making it increasingly difficult for households and small businesses to plan their finances.

He said the call followed growing complaints over fluctuating electricity bills, with consumers now paying not only for energy usage but also Capacity, Network (Rangkaian), Retail and AFA charges, the latter of which is adjusted monthly.

“Consumers are not asking to avoid reasonable electricity costs. They are asking for a system that is transparent, predictable and affordable,” Low, who is also the party’s vice-president, said.

Low pointed to a household bill covering July 24 to Aug 23 this year, where 1,026kWh of electricity consumption attracted different AFA rates because the billing period crossed two months, with 3.59 sen per kWh charged in July and 3.80 sen in August.

“For ordinary families, the question is simple: why does the amount keep changing, and how much will I need to pay next month?” he said.

He said the impact was even greater on SMEs, particularly restaurants, laundries, bakeries, cold-storage operators and small manufacturers, where electricity forms a significant portion of operating costs.

“Higher costs directly hit profits, cash flow and operating expenses, and may eventually translate into higher prices, reduced investment or fewer jobs,” he added.

While acknowledging that fuel prices are influenced by global markets, Low argued that power producers could cushion short-term fluctuations through long-term procurement contracts, inventory planning and other risk-management measures instead of passing costs directly to consumers each month.

He urged Putrajaya to explore a cost-smoothing mechanism so that temporary fuel price movements would not immediately translate into higher electricity bills.

Low further called for greater transparency over the Network charge, saying consumers deserved a clearer breakdown of what they were paying for, including whether the charge covered infrastructure upgrades, maintenance, operations, depreciation or capital returns.

“If reducing the cost of living is a priority, electricity costs cannot be treated in isolation. Families need certainty to plan their finances, while SMEs need stability to survive, grow and create jobs,” he stressed. ‒  Focus Malaysia