KUALA LUMPUR, June 21 — Starting July 1, 2025, Tenaga Nasional Berhad (TNB) will implement a new electricity tariff structure across Peninsular Malaysia, impacting over 23 million domestic users. This restructuring, approved under the Regulatory Period 4 (RP4) of the Incentive-Based Regulation (IBR) framework, introduces a simpler and more transparent billing system aimed at fairness, efficiency, and cost control.
The existing five-tier pricing system will be replaced with a streamlined two-tier structure — 27.03 sen/kWh for users consuming up to 1500kWh per month, and 37.03 sen/kWh for those exceeding that limit. In addition to the energy charge, consumers will now see itemised charges on their bill, including capacity (4.55 sen/kWh), network (12.85 sen/kWh), and a fixed monthly retail charge of RM10, bringing the average cost to approximately 44.5 sen/kWh before additional adjustments.
To encourage responsible energy use, TNB is offering incentives such as a full waiver of the RM10 retail charge for households using 600kWh or less, and rebates of up to 25 sen/kWh for those consuming 1000kWh or below. The new structure also introduces an Automatic Fuel Adjustment (AFA) mechanism, replacing the biannual ICPT system, which will now be reviewed monthly based on global fuel prices. The AFA rate is expected to be announced soon.
Consumers with smart meters or compatible systems can opt into a new Time of Use (ToU) scheme, allowing them to enjoy lower electricity rates during off-peak hours — from 10pm to 2pm on weekdays and all-day on weekends. For users within the 1500kWh bracket, off-peak rates will be 24.43 sen/kWh, while peak usage will be charged at 28.52 sen/kWh. Although peak-hour rates are higher than the standard tariff, strategic usage can yield significant savings, especially for electric vehicle (EV) owners charging overnight.
According to TNB, around 23 million domestic users will not see an increase in their bills under the new structure. In fact, many could experience a slight reduction, especially those consuming 900kWh or less. A new online calculator, launching June 23 on the myTNB website, will help consumers estimate their future bills based on the new tariff components.
Social support measures will also continue, including RM40 monthly rebates for e-Kasih registered households and a 10% discount for welfare organisations, religious institutions, and partially government-funded educational bodies. TNB emphasises that this restructuring supports the national agenda for sustainable energy transition, while offering greater transparency and flexibility to consumers.
Here’s a summary of TNB’s New Electricity Tariff Structure in key points:
- Effective Date: Starts 1 July 2025, covering over 23 million domestic users in Peninsular Malaysia.
- New Two-Tier Tariff:
- Up to 1500kWh/month: 27.03 sen/kWh
- Above 1500kWh/month: 37.03 sen/kWh
- Itemised Charges:
- Capacity charge: 4.55 sen/kWh
- Network charge: 12.85 sen/kWh
- Monthly retail charge: RM10
- Estimated average rate: ~44.5 sen/kWh (before fuel adjustments)
- Incentives:
- RM10 retail charge waived for usage 600kWh or below
- Up to 25 sen/kWh rebate for usage ≤1000kWh
- New Fuel Mechanism:
- Automatic Fuel Adjustment (AFA) replaces the previous ICPT, with monthly updates based on global fuel prices
- Time of Use (ToU) Option for smart meter users:
- Off-peak (10pm–2pm weekdays + all weekend): 24.43 sen/kWh
- Peak hours: 28.52 sen/kWh
- No Bill Increase for Majority:
- Users consuming ≤900kWh/month expected to see lower or unchanged bills
- 23 June: Online tariff calculator available on myTNB website
- Social Assistance:
- RM40 rebate for e-Kasih households
- 10% discount for welfare, religious, and educational institutions
- Goal: Promote energy efficiency, transparency, and support Malaysia’s clean energy transition.
