Friday, July 4, 2025

Large adjustments to home TNB invoice construction – no extra tiered charges, base tariff up by 13.64% from July 1, 2025

Big changes to domestic TNB bill structure – no more tiered rates, base tariff up by 13.64% from July 1, 2025

The way in which residential customers will probably be charged for electrical energy in Malaysia is about to endure a serious change, with the power fee (Suruhanjaya Tenaga, or ST) having introduced earlier in the present day that the common base electrical energy tariff in Peninsular Malaysia will probably be elevated from the present 39.95 sen/kWh to 45.4 sen/kWh from July 1, 2025.

The introduced price is a fraction decrease than the 45.62 sen/kWh that was accepted in December 2024, and by way of proportion, represents a 13.64% enhance as an alternative of the +14.2% that might have resulted from the beforehand accepted price.

The largest change that home customers will expertise is your TNB invoice with not be based mostly on a tiered kWh price, as you possibly can see from the comparability above. The following massive change is charges are going to be revised on a month-to-month foundation based mostly on the price of gasoline used for electrical energy technology, which we are going to clarify beneath.

The precise new tariff charges haven’t been revealed, however will probably be introduced tomorrow at 12 pm on the TNB web site. Whereas your payments will now be introduced in another way, the extra vital query is whether or not you can be paying extra to your electrical energy consumption. By all accounts, the rise means you must, however there’s a silver lining for almost all of customers, once more as defined additional beneath.

Big changes to domestic TNB bill structure – no more tiered rates, base tariff up by 13.64% from July 1, 2025

The change is a part of the three-year Regulatory Interval 4 (RP4) that runs from January 2025 to December 2027, changing RP3 from 2022-2024. Nevertheless, from January to end-June 2025, there was no change within the electrical energy tariff price and tariff construction, which allowed the general public half a yr to regulate. The present tariff schedule has been in place since 2014.

The ST mentioned that the tariff revision entails a restructuring of the common base tariff price and tariff schedule in addition to the implementation of an computerized gasoline value adjustment (AFA) mechanism, the latter changing the the present Imbalance Value Go-Via (ICPT) system.

Underneath the brand new AFA, changes will probably be made based mostly on month-to-month gasoline costs and change charges, permitting for both a rebate or surcharge to be made relying on precise and benchmarked gasoline costs. Because of this the electrical energy tariff will probably be adjusted on a month-to-month foundation as an alternative of each six months, which might imply you can be paying kind of to your month-to-month invoice even for those who eat precisely the identical quantity of electrical energy each month.

The ST announcement on the electrical energy tariff revision. Click on to enlarge.


Regardless of all of the adjustments, the fee mentioned that beneath the brand new tariff construction, greater than 23.6 million home electrical energy customers within the peninsular are set to learn from fairer and extra progressive charges.

The brand new tariff schedule will see customers now being divided into home and non-domestic classes, based mostly on voltage utilization (low, medium or excessive), whereas fees will replicate precise prices throughout power, capability and community parts.

Electrical energy payments are set to undertake a extra detailed itemised format to enhance pricing readability to customers, and an power effectivity incentive can be being launched into the billing. Home customers who eat 1,000 kWh or much less every month will probably be eligible for the inducement, with a downward sliding quantity (as within the extra the utilization, the lesser the inducement). Most significantly, this group of customers is not going to be affected by the brand new tariff implementation, the ST mentioned.

Click on to enlarge.

Non-domestic customers utilizing beneath 200 kWh a month may also profit from the inducement. Moreover, the time of use (TOU) scheme has been up to date to incorporate prolonged off-peak hours from 10 pm to 2 pm on weekdays and all day on weekends with a view to encourage consumption throughout low-demand durations.

Beforehand, solely business customers had the choice to be on TOU billing, but it surely’s unknown whether or not home customers can now have peak and off-peak charges. It’s seemingly that we’ll discover out tomorrow when the brand new tariff charges are introduced by TNB.

To protect social welfare points, the federal government will supply particular tariffs for agriculture, water companies and rail operators, and likewise present a ten% rebate for registered faculties, locations of worship and welfare properties. It’ll additionally proceed the month-to-month RM40 electrical energy invoice rebate programme for hardcore poor households registered beneath e-Kasih.

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