Starting 1 July 2025, over 23.6 million domestic electricity users in Peninsular Malaysia will benefit from a newly revised tariff system aimed at making electricity charges more affordable, transparent, and equitable.
This updated tariff structure, approved by the government and announced by the Energy Commission, will remain in effect until 31 December 2027. It forms part of the Incentive-Based Regulation (IBR) framework under Section 26 of the Electricity Supply Act 1990 and is part of the Fourth Regulatory Period (RP4).
Photo via The Rakyat Post
What’s Changing?
The new system introduces three major changes:
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A revised average base tariff
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A newly structured tariff schedule
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A more dynamic fuel cost adjustment mechanism
The revised base tariff will be set at 45.40 sen/kWh, slightly lower than the 45.62 sen/kWh set in December 2024. The Energy Commission projects that this update could lower the overall average electricity cost by up to 19% compared to the previous period.
Instead of a one-size-fits-all approach, the new schedule groups consumers based on voltage usage (low, medium, or high) and assigns rates based on the actual cost of supplying energy, capacity, network, and retail services. This means domestic and non-domestic users will be charged more accurately according to their actual consumption patterns and usage needs.
Key Benefits for Users
A major highlight of the new structure is the Energy Efficiency Incentive:
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Domestic users consuming 1,000 kWh or less per month are expected to see no increase in their bills.
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Non-domestic low-voltage users who consume 200 kWh or less will also enjoy incentives.
The Time of Use (ToU) plan has also been enhanced. Users can now benefit from extended off-peak hours, including the entire weekend (Saturday and Sunday), and weekdays from 10PM to 2PM. This encourages consumers to shift their electricity use to non-peak hours, potentially lowering their bills.
Protection for Vulnerable Groups
To safeguard essential sectors and at-risk communities, the following measures are in place:
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Special tariffs for agriculture, water services, sewage systems, and railway operators
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A 10% rebate for schools, religious institutions, welfare homes, and higher education institutions
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A RM40 monthly rebate for heads of households listed under the e-Kasih hardcore poor programme
Real-Time Fuel Cost Adjustments
The current Imbalance Cost Pass-Through (ICPT) system will be replaced with a new Automatic Fuel Adjustment (AFA) mechanism. AFA allows electricity generation costs to be adjusted monthly, based on real-time fuel prices and foreign exchange rates. Monthly updates will be published on the Energy Commission’s website.
Want to Know How It Affects You?
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Detailed tariff information: www.mytnb.com.my/tariff (available from 21 June, 12pm)
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Estimate your future bill with the tariff calculator: (available from 23 June)
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For questions or assistance, contact TNB CareLine at 1-300-88-5454 or email [email protected]
This comprehensive overhaul of the electricity tariff system is designed to make energy usage more affordable for everyday Malaysians while promoting sustainability and efficiency.
Congratulations to all users who will benefit from the upcoming changes — this is a positive step forward in our journey towards a fairer and more inclusive energy future.
