PUTRAJAYA, June 22 — Over 23.6 million domestic electricity users in Peninsular Malaysia are poised to benefit from a revised electricity tariff structure that promises fairer, more progressive rates starting July 1, 2025.
Announced by the Energy Commission under the Incentive-Based Regulation (IBR) framework, the new tariff will be in effect until December 31, 2027, and is aimed at improving energy efficiency, transparency, and affordability.
Under the Fourth Regulatory Period (RP4), the average base tariff has been reduced to 45.40 sen per kilowatt-hour (kWh) — slightly down from 45.62 sen/kWh approved in 2024 — leading to an overall potential cost reduction of up to 19 per cent compared to the previous period.
Households consuming 1,000 kWh or less per month will qualify for the Energy Efficiency Incentive, while low-usage non-domestic consumers (below 200 kWh) will also be eligible for similar benefits.
A key upgrade includes an expansion of the Time of Use (TOU) scheme to promote off-peak consumption. Users can now take advantage of lower rates from 10 p.m. to 2 p.m. on weekdays and throughout weekends.
Additionally, social support will continue in the form of specific tariffs for agriculture, water services, and rail operators, along with a 10 per cent rebate for schools, welfare homes, and places of worship.
The RM40 monthly electricity rebate for hardcore poor households under the e-Kasih programme remains in place. To further enhance transparency, electricity bills will now feature a more detailed itemised format, giving users a clearer breakdown of charges.
The newly introduced Automatic Fuel Adjustment (AFA) mechanism will replace the previous Imbalance Cost Pass-Through (ICPT), enabling monthly updates based on real-time fuel prices and currency fluctuations.
Consumers can review the full tariff schedule on the official TNB website from June 21, and access a bill estimation calculator starting June 23. The Energy Commission has reaffirmed its commitment to balancing user needs with sustainable energy management through this comprehensive restructuring.
