KUALA LUMPUR, December 27 — Starting July 1, 2025, Peninsular Malaysia’s base electricity tariff will rise by 14.2% to 45.62 sen per kilowatt-hour (kWh), as announced by Tenaga Nasional Berhad (TNB). The increase, part of Regulatory Period 4 (RP4) spanning 2025-2027, follows the previous rate of 39.95 sen/kWh under RP3 (2022-2024). The government confirmed that rates for the first half of 2025 would remain unchanged, with any discrepancies covered by the Kumpulan Wang Industri Elektrik fund.
Under RP4, TNB will allocate RM42.82 billion for capital expenditure, supporting infrastructure upgrades and facilitating Malaysia’s energy transition agenda. Operational expenditure is set at RM20.78 billion, with the regulatory rate of return maintained at 7.3%. TNB emphasized its commitment to reliable electricity supply, operational efficiency, and transparency under the Incentive-Based Regulation (IBR) framework, which has underpinned stability in the electricity industry since 2014.
The new tariff reflects the need to balance cost recovery and consumer interests while advancing sustainability. With fuel costs for electricity generation expected to fluctuate, additional expenses will be managed through the Imbalance Cost Pass-Through mechanism, ensuring no financial impact on TNB’s operations.
