KUALA LUMPUR: More than 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates due to the newly approved electricity tariff schedule approved by the government, the Energy Commission (EC) announced today.
This tariff determination will take effect from July 1, 2025, to December 31, 2027, under the Incentive-Based Regulation (IBR) framework, in line with the provisions of Section 26, Electricity Supply Act 1990, it said in a statement.
The electricity tariff changes for the Regulatory Period 4 (RP4) involve the restructuring of the following three components:
(i) The average base tariff rate;
(ii) The new tariff schedule; and
(iii) The fuel cost adjustment mechanism.
According to the EC, the Average Base Tariff Rate was adjusted based on the estimated cost of electricity supply for the RP4 period and is set at 45.40 sen/kWj, compared to 45.62/kWj approved in December 2024.
With this adjustment, the average overall electricity tariff cost is reduced by up to 19 per cent, compared to the Third Regulatory Period (RP3).
Changes to Electricity Tariff Structure Covering User Categories, Charges, and Incentives
The introduction of the new tariff schedule includes the following:
(i) Revised user categories, now divided into domestic and non-domestic based on voltage usage — low, medium, or high voltage; and
(ii) Charges for each component (energy, capacity, network, and retail), set based on their respective cost structures.
An Energy Efficiency Incentive will be introduced to encourage the 23.6 million domestic users to use electricity prudently.
Under this incentive, domestic users who consume 1,000 kWh or less will not be affected by the new tariff implementation.
Non-domestic low-voltage users who consume 200 kWh or below will also benefit from this incentive. Additionally, the Time of Use (TOU) scheme has been adjusted and extended to include longer off-peak periods, namely the entire Saturday and Sunday, and from 10 pm to 2 pm on weekdays (Monday to Friday).
“This is to encourage more efficient electricity usage aligned with demand patterns, in support of a more sustainable and efficient energy system. Users who shift their consumption to off-peak hours can enjoy lower bills compared to peak-hour usage,” said the statement.
To preserve social welfare aspects, the government has agreed to:
(i) apply specific tariffs for categories such as agriculture, water and sewerage services, and rail/traction operators;
(ii) provide a 10 per cent rebate for registered institutions of higher education, schools, welfare homes, and places of worship; and
(iii) continue the RM40 Electricity Bill Rebate Programme, which provides monthly assistance of up to RM40 for hardcore poor households registered under the e-Kasih system under the Prime Minister’s Department.
Eligible users can check their status at: https://semakanrebat.petra.gov.my/apps/public/index.php or visit the nearest utility outlet.
According to the EC, this comprehensive approach aims to promote energy efficiency and the uptake of renewable energy initiatives, benefiting all through a more efficient and sustainable energy system.
To support this, all users will receive a new, itemised electricity bill format.
The EC noted that most users are expected to remain unaffected by the new tariff schedule. Those who adopt energy-saving practices will benefit even more through the Energy Efficiency Incentives.
Reforming the Cost Adjustment Mechanism
For the energy charge component, a new and more dynamic fuel cost adjustment mechanism called Automatic Fuel Adjustment (AFA) will replace the Imbalance Cost Pass-Through (ICPT) mechanism.
This mechanism allows automatic monthly adjustments of generation costs based on prevailing fuel market prices and foreign exchange rates, with updates published monthly on the EC’s official website.
Implementation and User Support Services
The new tariff schedule will come into effect on July 1, 2025 and will be reflected in electricity bills starting with usage in July 2025. Details of the rates and new categories (if applicable) can be accessed through the following:
– The tariff schedule will be published at https://www.mytnb.com.my/tariff on June 21, 2025, at 12:00 pm;
– An electricity bill cost estimator will be available starting June 23, 2025, at https://www.mytnb.com.my/tariff
For further inquiries, users may contact TNB CareLine at 1-300-88-5454, email [email protected], or reach out via other official TNB platforms.
Energy Commission’s Commitment
As the regulatory body for energy in Peninsular Malaysia, the EC is committed to ensuring that tariff implementation is fair, transparent, and sustainable, meeting the needs and balancing the interests of all energy users.
This comprehensive restructuring and alignment is a crucial step towards realising and strengthening the national energy transition agenda, with an emphasis on equity, inclusion, and long-term sustainability.
