The inevitable has arrived as the Energy Commission (Suruhanjaya Tenaga, ST) has confirmed a new TNB tariff rates for Peninsular Malaysia, which comes into effect starting 1 July 2025.
Under the fourth regulatory period (RP4), the base electricity tariff will be revised to 45.4 sen/kWh, marking a 13.64% increase from the previous 39.95 sen/kWh rate. This updated tariff structure will start on 1 July 2025 and remain in effect until 31 December 2027.
How your TNB bill will change from July 2025
Perhaps more significantly for domestic users, your TNB bill calculation method is changing. Moving forward, bills will no longer follow the previous tiered kWh system, where higher usage was billed at different rates.
Instead, the new system uses Automatic Fuel Cost Adjustment (AFA) — replacing the older Imbalance Cost Pass-Through (ICPT). This means your bill will now adjust monthly based on the actual cost of fuel used to generate electricity.
ST notes that under AFA, monthly fluctuations in electricity rates will not exceed 3 sen per kWh (whether increase or rebate). Any adjustment greater than 3 sen will require government approval.
Breakdown of the new TNB rates
According to the new TNB tariff schedule, your bill will now consist of five components:
- Generation Charge (Covers electricity generation cost):
- 27.03 sen/kWh (for usage under 1,500 kWh/month)
- 37.03 sen/kWh (for usage above 1,500 kWh/month)
- Capacity Charge (Cost of maintaining and ensuring sufficient electricity supply capacity)
- 4.55 sen/kWh
- Network Charge (Covers grid and infrastructure maintenance)
- 12.85 sen/kWh
- Retail Charge (Customer service, billing, and account management)
- RM 10/month
- Waived for households using less than 600 kWh/month
TNB also mentioned that a new bill calculator tool will go live on Monday, 23 June 2025, to help users better understand their monthly electricity charges.
Will my electricity bill go up?
For households consuming less than 1,000 kWh/month, your bill will likely remain unchanged or possibly decrease slightly. The same applies to low-voltage non-domestic users using less than 200 kWh/month.
TNB has reiterated that 23 million consumers are guaranteed to be unaffected by the new rates.
Time-of-Use (ToU) tariff now more flexible
Under the new TNB rates, a major change is the introduction of Time-of-Use (ToU) pricing for domestic consumers. Off-peak hours now include:
- Weekends (Saturday and Sunday)
- Weekdays (From 10pm to 2pm the next day)
If your household uses less than 1,500 kWh/month, off-peak rates are charged at 24.43 sen/kWh, compared to 28.52 sen/kWh during peak times.
For households consuming over 1,500 kWh/month, the peak period rates are charged at 38.52 sen/kWh, while off-peak rates are charged at 34.43 sen/kWh.
This is especially useful for EV owners, who can plan their charging during off-peak times to enjoy lower electricity rates.
The ToU scheme is now available as an optional plan to all TNB customers with Smart Meters and Current Transformer (CT) meter or Remote Meter Reading (RMR) meter. To learn more or to sign up, just visit the nearest Kedai Tenaga.
You could save if you use under 900 kWh/month
TNB has published a comparison table for usage under 900 kWh/month. Based on the table, households consuming less than 900 kWh/month could see slight savings on their electricity bills.
However, with the AFA system being linked to global crude oil and fuel prices, these savings may vary monthly.
UPDATE: TNB’S new calculator is online, read more here: New TNB rates from July 2025: Will your electricity bill go up or down?