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New electricity tariff structure for West Malaysia effective 1st July 2025, promises fairer electricity rates

The Energy Commission of Malaysia (ST – Suruhanjaya Tenaga) has announced a new electricity tariff structure for Peninsular Malaysia which will take effect from 1st July 2025 to 31st December 2027. The implementation is done under the Incentive-Based Regulation (IBR) framework in accordance with the provisions of Section 26 of the Electricity Supply Act 1990.

According to the regulator, the new changes will provide a more equitable and progressive electricity tariff for over 23.6 million domestic electricity users in Peninsular Malaysia, under the Regulatory Period 4 (RP4). It iterated that the 3 major changes cover the base electricity tariff rate, new tariff structure and fuel cost adjustment mechanism.

ST: Overall average cost of electricity will reduce by up to 19%

In December 2024, the government approved the implementation of Regulatory Period 4 (RP4) with a set base tariff rate of 45.62 sen per kWh. This marks a 14.2% increase from the current average tariff of 39.95 sen per kWh.

However, ST announced that the tariff rate for RP4 has been revised down slightly to 45.40 sen per kWh. With the latest revision, ST says the new tariff will reduce the average overall electricity cost by up to 19% compared to Regulatory Period 3 (RP3).

New Tariff Structure to include breakdown of energy, capacity, network and retail costs

The updated tariff structure introduces a new user categorisation—Domestic and Non‑Domestic—based on voltage levels (Low, Medium, High), with separate itemised charges for energy, capacity, network, and retail components.

As a result, electricity bills will be more detailed and itemised, offering clearer visibility into energy, capacity, network, and retail components.

As shown above, it looks like ST is doing away with the usual tiered usage breakdown that’s being implemented on the current bill. On the new bill, users will see a breakdown of total energy cost, adjustments for fuel cost, capacity, network cost and retail cost based on kWh used.

To recap, the current domestic tariff is split in 5 different tiers. The first 200kWh of electricity usage is priced at 21.8 sen per kWh, while the next 100kWh is priced at 33.4 sen per kWh.

This is followed by the third tier between 301 to 600kWh which is charged at 51.6 sen per kWh and subsequently from 601 to 900kWh at 54.6 sen per kWh. The highest tier, for electricity usage above 900kWh, is charged at 57.1 sen per kWh.

New structure to encourage efficiency and usage during off-peak hours

To encourage efficient consumption of electricity, a new Energy Efficient Incentive will be introduced for domestic users. Under this incentive, domestic consumers using 1,000 kWh or less per month will not be impacted by the new tariff structure. Based on the sample bill structure from ST, the incentive will be reflected as a rebate in the monthly electricity bill.

Meanwhile, non-domestic low voltage users of 200kWh and below will also benefit from this new incentive.

To encourage efficient electricity consumption based on demand, the Time-of-Use (TOU) scheme has been streamlined and expanded with longer off-peak periods. This includes entire Saturday and Sunday, as well as 10pm to 2pm between Monday to Friday. As a comparison, the current off-peak TOU is from 10pm to 8am.

Currently, the TOU scheme is applicable to medium and high-voltage customers under commercial (C2), industrial (E2, E2s, E3, E3s), agriculture (H2) and mining (F2) tariff categories.

According to ST, users consume more electricity during off-peak periods, they will enjoy greater electricity bill savings compared to usage during on-peak hours.

The government has also agreed to several measures to ensure that social and welfare aspects are adequately addressed. This includes:

  • Specific tariffs for agriculture, water, sewerage services and rail operators.
  • 10% rebate for schools, places of worship, and welfare homes.
  • RM40 monthly electricity bill rebate for eligible hardcore poor households (under the e-Kasih system).

Consumers can check if they are eligible for the RM40 monthly electricity rebate here.

ICPT to be replaced by AFA, updated every month

The current Imbalance Cost Pass‑Through (ICPT) mechanism, which adjusts costs based on fuel and other generation-related expenses, will be replaced by the Automatic Fuel Adjustment (AFA) mechanism.

Instead of reviewing and reflecting the fuel and generation cost via ICPT every six months, the new AFA mechanism enables an automatic generation cost adjustments monthly based on the current fuel prices and foreign exchange rates. Information on the latest AFA will be reported monthly on ST’s website.

So how much do I need to pay for electricity from 1st July 2025?

According to ST, the new tariff structure will be published on TNB’s tariff page on Saturday, 21st June 2025 at 12:00pm.

To find out how much you’ll have to pay for the next bill, users can also generate an estimated monthly bill cost using the updated tariff calculator. The new calculator is expected to go live latest by Monday, 23rd June 2025 on the same tariff page on TNB’s portal.

So do you need to pay more or less for your upcoming bill? It all depends on the final tariff structure that will be revealed tomorrow.

Based on the current tariff on TNB’s bill calculator, a domestic user with 600kWh of electricity consumption will have to pay RM219.80 inclusive of tax. Meanwhile, domestic usage of 900kWh would cost RM408.70 inclusive of tax.

ST says that as the energy regulator for Peninsular Malaysia, it is committed to implementing tariffs based on fair, transparent, and sustainable principles, designed to meet the needs and balance the interests of all energy users.

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PEMULIH: KeTSA details discounts on electricity bills

The Ministry of Energy and Natural Resources (KeTSA) today detailed the targeted electricity bill discounts for domestic and non-domestic users in the Peninsula and Sabah, as announced by the government in the National People’s Well-Being and Economic Recovery Package (PEMULIH).

Its Minister, Datuk Seri Dr Shamsul Anuar Nasarah said a total of 2.9 million domestic users in the Peninsula who use monthly electricity of 200 Kilowatt hours (kWh) will enjoy a 40% discount on the bills.

He said domestic users whose monthly consumption is between 201kWh and 300kWh will receive a discount of 15%, between 301kWh and 600kWh will receive a 10% discount, and between 601kWH and 900kWh, a 5% discount.

“This discount will be reflected in July, August and September electricity bills,” he said in a statement.

The discount is among the assistance initiatives under the PEMULIH package, worth RM150 billion, announced by Prime Minister Tan Sri Muhyiddin Yassin today, to ease the burden of the people, following the Covid-19 pandemic.

Shamsul Anuar said that non-domestic users in the Peninsula would be given a five per cent discount for low voltage commercial, industrial and agricultural categories, while users in six selected business sectors listed in the PEMERKASA Plus initiative, would continue to receive a 10% discount during the same period. 

Meanwhile, users in Sabah will enjoy targeted electricity bill discounts for a period of three months starting in July, involving a discount of 40% for monthly electricity consumption of 200kWh and below.

“Users with monthly consumption between 201kWh to 300kWh will receive a 15% discount; 301kWh to 500kWh, a 10% discount; and 501kWh to 1000kWh, a 5% discount.

“Non-domestic users under the low voltage commercial, industry and agriculture categories will enjoy a 5% discount on electricity bills, similar to the Peninsula,” he said.

He said during Phase One of the National Recovery Plan, there will be no power cuts to users with arrears not exceeding six months until Sept 30, and an Easy Payment Plan facility for domestic consumers will also be offered until Dec 31.

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Power discount for six economic sectors to be funded by govt — TNB

The electricity rebate announced yesterday for six business sectors heavily impacted by the Covid-19 will be funded by the government, said Tenaga Nasional Bhd (TNB).

This will include contributions from the Electricity Industry Fund, the utility company said in response to inquiries by theedgemarkets.com.

TNB said the announcement of an Imbalance Cost Pass-Through rebate of two sen per kilowatt-hour (kWh) for all customers, including domestic customers, with monthly consumption of 300kWh and below will also be funded by the government in the same manner.

“The impact of the discount and the rebate is neutral on TNB as TNB’s electricity revenue will not be impacted. There will also not be any effect on TNB’s business operations and financial position,” the company said.

Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that six business sectors nationwide — hotel operators, theme parks, convention centres, shopping malls, local airline offices, travel and tour agencies — would get a special discount of 10% on electricity bills from January to March.

Meanwhile, the two sen per kWh rebate was first announced on Dec 23, 2020 and will take effect from Jan 1 until June 30. This discount is equivalent to a reduction in electricity bills of up to 9%, Muhyiddin said yesterday.

Shares in TNB finished 0.98% or 10 sen lower at RM10.08 yesterday, valuing the company at RM57.5 billion. The counter saw 3.82 million shares traded.

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Three months’ free electricity bills for domestic low power users, RM77 discount for others

The Government has announced an additional RM942mil in discounts and rebates for domestic users’ electricity bills.

Energy and Natural Resources Minister Datuk Dr Shamsul Anuar Nasarah said the Bantuan Prihatin Elektrik Tambahan is on top of the existing discounts on Tenaga Nasional Bhd (TNB) electricity bills announced during the government’s economic stimulus package earlier.

In a press conference on Saturday (June 20), he said four million domestic consumers with electricity consumption of 300 kWh and below per month would enjoy free electricity for April, May and June 2020.

Domestic consumers with consumption of more than 300 kWh per month over the same period would get a discount of RM77 per month.

Shamsul Anuar also said the rebates would be reflected in the July bill.

Additionally, TNB also agreed to halt all electricity disconnection activity until Sept 30,2020.

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MCO: Understanding How Your Electricity Usage Is Calculated

With the Covid-19 movement control order (MCO), consumers may have some questions on how their electricity bills are being calculated by Tenaga Nasional Bhd (TNB). Here are the most frequently asked questions:

When did TNB suspend its meter reading activities?

All meter reading activities were discontinued from the start of the MCO on March 18, as part of the MCO guidelines, in order to ensure the safety of its customers and employees.

How was my bill calculated during this period?.

During the meter reading suspension period, electricity bills were calculated based on the previous month’s bill (prior to the MCO) as an estimate.

When will TNB resume meter reading operations?

TNB’s on-ground meter reading activities have since resumed in stages from May 15, following a billing and calculation process that has been reviewed and approved by the Energy Commission.

What does this mean for my electricity bill?

Say your total electricity usage for three months is 1050 kWh. This amount will be divided into 350 kWH a month, which is equivalent to RM102.80 a month. The amount customers have already paid based on the estimate bill will be deducted from the current, actual amount.

Are there any payment options?

TNB is giving customers an option to make installment payments through its Easy Payment Plan, but you can rest assured that you will only be charged for what you use.

Still have questions? For more information, visit www.tnb.com.my, contact the TNB Careline at 1-300-88-5454 or email tnbcareline@tnb.com.my. Alternatively, visit your nearest Kedai Tenaga

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How to Save Electricity During AidilFitri

  1. Turn off the lights. This is the simplest, most common way to save electricity, and it really works. Start paying attention to how many lights are on in your house at a given time. Be mindful of how many lights you really need to be using at once. When you leave a room, make a habit of turning off the lights, every single time.
  2. Embrace natural light. Open up your curtains and let the sun shine in! Using natural light whenever possible instead of relying on artificial light can greatly reduce the amount of electricity you use during the day.
  3. Change your bulbs. Replacing regular incandescent light bulbs with compact fluorescent (CFL) or LED bulbs is a big energy saver. Incandescent bulbs release 98% of their consumed energy through heat, while CFL and LED bulbs are much more energy efficient and last several times longer.
  4. Unplug any appliances that aren’t in use. Did you know that appliances that are plugged in keep using energy, even when they’re switched off? Even an appliance as small as a coffee pot continues slowly sapping energy every moment it stays plugged in, long after the last cup of coffee has been consumed.
  5. Use the air conditioner less frequently. Sometimes it’s unavoidable to use the air conditioner, but there’s no reason to have it on from the beginning of spring to the end of the summer without ever turning it off. Find other ways to cool yourself down when possible.
  6. Use less hot water. Heating water takes a lot of energy. It’s not necessary to take cold showers, but being mindful of how much hot water you use, and how the water is being heated, can save a lot of electricity and money.

Extra Tips: Replace old appliances with energy-saving models. When older appliances were manufactured, companies weren’t as concerned with saving electricity. Newer models are designed to conserve energy, reducing your household costs and lowering your carbon footprint.Look for “Energy Star” ratings on new appliances. The more stars it have the more it save energy.

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TNB To Offer Discounts for Electricity Bills for Six Months

On February 27, 2020, the RM20 billion Economic Stimulus Package (ESP) was launched and decided to give:

6-month discount of 15% for the six sectors identified as being most affected by the impact of COVID-19 – hotels operators, travel agencies, local airlines offices, shopping malls, convention centers and theme parks.

6-month discount of 2% to all residential, commercial, industrial and specific agriculture excluding the 6 sectors mentioned above.

The discount mention as above will be effective over a six (6) month period of electricity consumption from 1 April 2020 to 30 September 2020.

Furthermore, TNB has suspended disconnections during the MCO period. Customers who encounter financial hardship may engage TNB to establish feasible payment plan post MCO.

Read more at: https://www.tnb.com.my/announcements/tnb-initiatives-to-help-combat-covid-19