The new electricity tariff under Regulatory Period 4 (RP4), set to take place from July 1, 2025, to Dec 31, 2027, is said to be a major reform in Malaysia’s energy sector. This updated tariff indeed includes notable changes to the current tariff design which, if executed well, could promote the national agenda towards energy transition while ensuring power system security and resilience. Nevertheless, there are implications of the new tariff structure that need to be further highlighted and clarified to ensure that the well-intended enhanced tariff design can achieve its full potential.