Your electricity bill contains a lot of information. This page will help you understand the most important billing components in your electricity bill.
Customer electricity consumption will be charge as their usage. The rates are as stated in Pricing & Tariff. The unit for the consumption used is kWh.
For low voltage customer (commercial, industrial and agriculture), their usages are usually charged based on two block price rate which are ≤ 200 kWh and above 200 kWh.
For medium and high voltage customer, only one price rate is applicable as stated in Pricing & Tariff.
Note: If billing period is above 35 days , proration factor applies
Low Voltage commercial customer A has a consumption of 350 kWh in his July 2018 bill. Based on price rate stated in Tariff book, the consumption will be divided into two blocks as below
200 kWh x RM 0.4350 = RM 87.00
150 kWh x RM 0.5090 = RM 76.35
Medium Voltage Commercial customer B has consumption of 500 kWh in his July 2018 bill
MD is measured in Kilowatt (kW). MD is the highest level of electricity demand recorded by TNB meter during a 30-minute interval in a month.
The amount payable by a Tariff C2 customer registering 100kW of MD for a particular month
Few activities could be carried out by customers that assist in reducing MD charges such as:
Practicing demand side management such as peak shift i.e. shifting their peak operation/consumption to off peak period as MD charges is not applicable during off-peak period for customer with peak/off-peak tariff
Opting for any promotional scheme offered by TNB relating to MD such as Sunday Tariff Rider Scheme (STR).
Starts your motor/equipment in stages or during off-peak period
A consumer who applies for temporary supply shall be charged at the tariff rate appropriate to their category plus 33% surcharge on the total monthly bill. This is mostly applicable for construction site that requires temporary supply for construction site/site office.
A construction site applies for temporary supply for the site office. The January 2018 bill shows the following billing components charges
Consumption charges (kWh) = RM55.20
ICPT = RM1.30
*Rate may varies every 6 months
For low voltage customer (commercial, industrial and agriculture, monthly charge applicable to a consumer in the event of monthly total electricity bill (kW and or kWh) is less than RM7.20. If consumption is 0 kWh, the RM7.20 is imposed in the bill.
For medium and high voltage customer, monthly charge applicable to a consumer in the event of monthly total electricity bill (kW and or kWh) is less than RM 600.00. If consumption is 0 kWh, the RM 600.00 is imposed in the bill.
The formula used to determine Monthly Minimum
Charges are as following:
TMMC charges – (kWh charges + kW charges + Discount Amount + ICPT)
Medium voltage Customer with billing period below 31 days receives Jan 2018 bill with the following charges
Consumption charges (kWh) = RM5.00
Maximum Demand charges (kWh) = RM45.00
ICPT = RM0.50
Low voltage customer with billing period 38 days receives Jan 2018 bill with the following charges
Consumption charges (kWh) = RM0.00
ICPT kWh = RM0.00
Proration Factor (38/30 days) = 1.26667
Imbalance Cost Pass Through (ICPT) is a mechanism under the Incentive Based Regulation (IBR) framework that allows TNB to reflect changes (either increase or reduce) in fuel and other generation-related costs in the electricity tariff every 6 months.
Suruhanjaya Tenaga as Malaysia's energy regulator determines the calculation and methodology of the ICPT, subject to Government approval on a 6-month basis.
All customers are affected by ICPT except for Domestic customers with monthly consumption of RM77.00 (300 kWh) and below.
For the period of 1 January to 30 June 2019, the total imbalance cost is RM 1,820 million. This additional generation cost is due to higher fuel and generation costs for the period of 1 July – 31 December 2018.
To cushion the impact of high fuel costs and reduce the surcharge to be passed through via the ICPT mechanism, the Government has approved mitigation measures of RM 872 million from the utilisation of funds from Kumpulan Wang Industri Elektrik(“KWIE”) (RM 308 million to cover the surcharges for domestic customers) and savings from the annual regulatory adjustment (RM 564 million), which is a mechanism allowed under the Regulatory Implementation Guidelines. With this, the remaining imbalance cost to be passed-through via the ICPT mechanism is RM 948 million.
The ICPT implementation for period 1 January 2019 until 30 June 2019 for full recovery of the remaining imbalance cost of RM 948 million are as follows:
Consumption in July 2018 is 400 kWh, ICPT rate is 1.35 sen/kWh or 0.0135 RM/kWh (surcharge)
=400kWh x (0.0135)
RE Fund (KWTBB) is a fund collected by the Government through consumer’s electricity consumption. The Fund will be used to promote growth of electricity generation from renewable energy resources.
In line with the Renewable Energy Act 2011 (RE Act 2011), the Renewable Energy (RE) fund (KWTBB) is collected through a surcharge of consumers’ electricity consumption at the rate of 1.6%.
TNB is only the collecting agent of the fund for the Government.
RE Fund (KWTBB) surcharge is calculated as follows: RE Fund (KWTBB) Surcharge = 1.6% × [(kWh+kW) – Discounts]
The RE Fund (KWTBB) collected from the customer’s electricity bill is channelled to the Government (SEDA - Sustainable Energy Development Authority). For more information, you can visit this website: seda.gov.my
Customer A have charges on the following billing components:
Consumption for 400 kWh = RM 87.20
10 % TNB Discount = RM 8.72
When it is imposed
The penalty charge will be imposed if payment is made later than 30 days after the bill date
How it is calculated
The amount is calculated based on 1% (simple interest) of the outstanding bill amount, multiplied by number of days outstanding.
This penalty cannot be waived unless proven to be an administrative error on TNB’s part.
How to Avoid it
Please pay your bill within 30 days from the bill date.
Total billed amount: RM1,000.00
Bill date: 1 May 2018
Date of payment: 10 June 2018
Days outstanding: 10 days
Connected Load Charge is a mitigating tool to discourage consumers from over declaring their load requirement. Over declaration will lead to over plant up and waste of resources and increase in reserve margin. Without CLC, other consumers have to also pay for the unnecessary higher cost of electricity due to wastage and this is unfair to those who properly declare.
Other utility who does not have CLC penalty, recover their demand component or fix cost via imposing contract capacity charge through their tariff rate based on consumer declaration
CLC is applicable when the actual Maximum Demand (MD) recorded on any month is less than 75% of the declared maximum demand during the said period.
CLC is imposed based on the shortfall between the 75% of the declared maximum demand and maximum demand recorded in a month. CLC rate charges are RM8.50 per kilowatt and subjected to prevailing changes from time to time.
Nevertheless, for the first 3 years, the CLC will be based on staggered percentage to assist consumer during the initial stage of their operation.
The method in determining Reference Maximum Demand* for calculating CLC are as follows:
|Year||Reference Maximum Demand*|
|1||0% x 75% x Declared Maximum Demand(CLC exempted for the first year only)|
|2||50% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]|
|3||75% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]|
|4||100% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]|
|5||100% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]|
|6||100% x 75% x [Declared MD or Highest Recorded MD, whichever is higher]|
Note: CLC is applicable when MD recorded < Reference MD.
A penalty of RM8.50/kW will be charged for every kW shortfall between the Actual Maximum Demand used compared to the Reference Maximum Demand (RMD).
CLC is calculated monthly.
CLC penalty RM8.50 is well below the Maximum Demand rate.
Maximum Demand is prorated if billing period is outside the range 30 ± 5 days
|Year||Maximum Demand Declared (assume 10,000kW)||Reference Maximum Demand(RMD)||Actual Maximum Demand(AMD) (kW)||CLC Penalty(RM)|
|1||10,000kW||0% x 75% x 10,000kW = 0kW||100kW||Not Applicable|
|2||10,000kW||50% x 75% x 10,000kW = 3,750kW||5,000kW||No penalty. AMD > RMD|
|3||10,000kW||75% x 75% x 10,000kW = 5,625kW||5,000kW||CLC = RM8.50 x ( 5,625kW - 5,000kW ) = RM5,312.50|
|4||10,000kW||100% x 75% x 10,000kW = 7,500kW||7,500kW||No penalty. AMD > RMD|
|5||10,000kW||100% x 75% x 10,000kW = 7,500kW||8,000kW||No penalty. AMD > RMD|
|6||10,000kW||100% x 75% x 10,000kW = 7,500kW||8,000kW||No penalty. AMD > RMD|
*Temporary supply and cogen consumer are not subjected to CLC
In addition to the appropriate tariff rate, there will be a surcharge for transformer-operated electric welding equipment installed for low voltage consumers at RM3.00 per kVA per month, and for medium and high voltage consumers at RM2.00 per kVA per month. Motor-operated welding sets are exempted from the foregoing surcharge.
An industry low voltage customers has welding set usage of 67.86 kVA in his Jan 2018 bill with billing period of 31 days
Welding Set Load (kVA)
A Power factor surcharge is imposed when your power factor is less than 0.90 (electricity supply 132kV and above) or less than 0.85 (electricity supply below 132 kV).
Calculation to determine
kWh / √ (kWh2 + kVARh2)
Power factor surcharge for customers with electricity supply below 132 kV is calculated as follows:-
1.5% surcharge of the current bill – for every
less than 0.85 power factor
[[(0.85 – PF)/0.01] x 1.5% ] x [RM kWh + RM kW + RM ICPT]
3% surcharge of the current bill – for every
less than 0.75 power factor
[[(0.85 – 0.75)/0.01] x 1.5% ] +[[(0.75 – PF)/0.01] x 3% ]] x [RM kWh + RM kW + RM ICPT]
Consumption used by Customer A is 3,500 kWh where the power factor is 0.73. The ICPT rate is RM 0.0135
Total consumption (RM) = RM1,531.30
Consumption used by Customer B is 3,500 kWh where the power factor is 0.80. The ICPT rate is RM 0.0135
Total consumption (RM) = RM1,531.30
The below organizations/learning/worships center are eligible to a 10% discount on their monthly bills:
1. Welfare organizations such as orphanage and elderly home, home for the blind and disable, spastic’s center that are fully funded and administered by Ministry of Women, Family and Community Development or such institutions with source of income funded by public donation
2. All government and private institutions of learning which are fully or partly funded by the government and normally administered by Ministry of Education.
3. Places of worship registered under Registrar of Societies and/or its respective religious governing body such as State/Federal Islamic Religious Council/Department, Malaysian Buddhist Association, Malaysian Hindu Sangam, Sikh Naujawan Sabha, Sikh Youth Movement, Buku Panduan Katholik and Buku Panduan Gereja Malaysia dan Brunei.
The formula for TNB Discounts is as below:
TNB Discount = 10% x (Consumption charges + ICPT)
Note: Customers in the mining tariff category are entitled to a 25% discount on their monthly bills.
The April 2018 bill for Sek Keb A shows
Consumption charges (kWh) in RM = RM231.80
ICPT (RM 0.0135) = RM 8.11
Proration factor applied by TNB will benefit the customers whose meters are read above 35 days
Proration Factor = Number of billing days / 30
Prorated Factor will be multiplied with each tariff block for low voltage customer. Customer will benefit lower rate for expanded consumption block range.
Low Voltage Customer receives Jan 2018 bill with 38 days billing period with consumption 850 kWh
|Consumption block (default)||Usage (kWh) - Prorated||Rate (RM/kWh)|
|200||200 x 1.26667 = 253||0.4350|
|> 200||850 – 253 = 597||0.5090|