It’s official. Starting July 2025, the new TNB rates will take effect in Peninsular Malaysia, introducing a 13.64% increase in the base electricity tariff, from 39.95 sen/kWh to 45.5 sen/kWh. But does this mean your TNB electricity bill will rise by the same amount?
On the surface, it appears that the 13.64% increase in the base electricity tariff would mean that the overall TNB bill would increase the same, but in reality, it’s not so straightforward.
Not necessarily. That’s because TNB is rolling out a new billing system, replacing the old tiered kWh structure with a fuel cost-based calculation called Automatic Fuel Cost Adjustment (AFA), which supersedes the previous Imbalance Cost Pass-Through (ICPT) mechanism.
This means your bill will now adjust monthly based on the actual cost of fuel used to generate electricity.
Furthermore, your new TNB bill from July 2025 onwards will consist of five main sections:
- Generation Charge (Covers electricity generation cost):
o 27.03 sen/kWh (for usage under 1,500 kWh/month)
o 37.03 sen/kWh (for usage above 1,500 kWh/month) - Capacity Charge (Cost of maintaining and ensuring sufficient electricity supply capacity)
o 4.55 sen/kWh - Network Charge (Covers grid and infrastructure maintenance)
o 12.85 sen/kWh - Retail Charge (Customer service, billing, and account management)
o RM 10/month
o Waived for households using less than 600 kWh/month
Will your TNB bill increase?
Now that TNB’s new bill calculator has gone online, we decided to give it a try, inputting our current usage.
Based on our previous month’s usage of 411 kWh, the old bill came to RM128.20. Under the new system, it drops to RM124.98 — a savings of RM3.22.
With a household usage of 437 kWh, the bills came to RM 142.30 under the old system, but with the new system, the bill would be RM 132.89.
Read Also: New TNB rates from July 2025 – Here’s what you need to know
Time-of-Use (ToU) scheme: Lower rates if you plan ahead
While the amount may not sound like a lot, bear in mind that you can potentially save more if you opt for the Time-of-Use (ToU) scheme, which offers lower off-peak rates of24.43 sen/kWh. TNB defines off-peak period as weekends, and weekdays from 10pm to 2pm.
How much electricity does your household consume each month? Let us know if your household would save or pay more under the new system.