DOMESTIC GAS SUPPLY STABLE, SUFFICIENT TO SUPPORT POWER PLANT OPERATIONS –  FADILLAH

PUTRAJAYA, March 15 (Bernama) -- The country’s gas supply is currently stable and sufficient to support power plant operations, ensuring that the national electricity supply system remains secure, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

Fadillah, who is Minister of Energy Transition and Water Transformation,  said the electricity generation system in Peninsular Malaysia uses around 40 to 45 per cent natural gas as its main fuel.

He said a large portion of the gas supply is sourced domestically from Kerteh as well as from the Thailand–Malaysia Joint Development Area.

“The Ministry of Energy Transition and Water Transformation (PETRA) is closely monitoring the latest developments in the geopolitical crisis in West Asia, particularly following the closure of the Strait of Hormuz  by Iran on March 2, 2026, which has affected the global energy market.

“However, this development does not affect the current availability and security of the country’s electricity supply,” he said in a statement today.

Fadillah said the government remains committed to protecting consumer welfare from the impact of rising global fuel costs through the Incentive-Based Regulation framework under the Fourth Regulatory Period from 2025 to 2027.

He said any changes in fuel costs such as gas and coal would be adjusted through the Automatic Fuel Adjustment mechanism on a monthly basis based on the actual movement of fuel costs in the market.

He said domestic consumers with electricity usage not exceeding 600 kilowatt-hours per month are fully exempted from fuel cost adjustments.

“This means that about 85 per cent of domestic consumers nationwide will not be affected by fluctuations in fuel prices in the international market,” he said.

He said based on current developments, the Automatic Fuel Adjustment rate is expected to remain in the form of a rebate until April 2026, but it may change if global fuel costs continue to rise due to prolonged tensions in West Asia.

Since July 2025, the government has channelled subsidy support amounting to RM2.50 billion to consumers through electricity bill rebates as an energy efficiency incentive, he said.

He added that the government is also studying additional mitigation measures should the conflict in West Asia continue and exert excessive pressure on fuel costs.

-- BERNAMA