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More than 23.6 million domestic electricity users in Peninsular Malaysia are set to enjoy a fairer and more progressive electricity tariff schedule starting 1 July 2025
According to the Energy Commission, the revised tariff plan, approved by the government under the Fourth Regulatory Period (RP4), will remain in effect until 31 December 2027.
It falls under the Incentive-Based Regulation (IBR) framework outlined in Section 26 of the Electricity Supply Act 1990.
The restructuring involves three core components, namely revised average base tariff rates, new tariff schedule, and fuel cost adjustment mechanism.
The new base tariff is set at 45.40 sen/kWh, slightly lower than the previous 45.62 sen/kWh approved in December 2024.
This adjustment is expected to reduce the overall average electricity cost by up to 19% compared to the previous regulatory period, the Energy Commission said.
Under the new tariff structure schedule, consumers will now be grouped as domestic or non-domestic based on voltage usage (low, medium, or high), and the setting of charges for the energy, capacity, network and retail components, based on their respective costs.
The Energy Commission is committed to ensuring that the implementation of tariffs is guided by the principles of fairness, transparency, and sustainability to meet the needs and balance the interests of all energy consumers. This comprehensive restructuring and harmonisation is an important step toward realising and strengthening a fair and inclusive national energy transition agenda.
A key feature is the Energy Efficiency Incentive
- Domestic users who consume 1,000 kWh and below are not expected to be affected
- Non-domestic low-voltage users consuming 200 kWh and below will also benefit from this incentive
In addition, the Time of Use (ToU) scheme has been streamlined and expanded to offer a longer off-peak period, covering the entire Saturdays and Sundays, as well as from 10PM to 2PM on weekdays from Monday to Friday.
This encourages users to shift electricity usage to non-peak times, which may lower their bills, according to the statement by the Energy Commission.
Additionally, to protect vulnerable groups and essential sectors, there are a couple of social and welfare protections
- Special tariffs will apply to agriculture, water services, sewage, and rail operators.
- 10% rebate will be offered to institutions like schools, places of worship, welfare homes, and higher education institutions.
- RM40 monthly rebate will continue for heads of households registered as hardcore poor under e-Kasih.
Users can check their eligibility here.
Moreover, the Automatic Fuel Adjustment (AFA) system will replace the current Imbalance Cost Pass-Through (ICPT). AFA allows real-time monthly adjustment of electricity generation costs based on current fuel prices and forex rates. These details will be reported monthly on the Energy Commission's website.
Where to get more information
- Tariff details will be published on: https://www.mytnb.com.my/tariff from 21 June, 12pm
- Tariff calculator available from 23 June to estimate your monthly bill at https://www.mytnb.com.my/tariff
- For help: Contact TNB CareLine at 1-300-88-5454 or email [email protected]
