UNDERSTANDING YOUR ELECTRICITY BILL
HOW TO READ YOUR ELECTRICITY BILL
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Consumption Charges (kWh) / Caj Kegunaan
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
Example 1:
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 76.35Total Consumption Rate=RM87.00 + RM76.35=RM 163.35Example 2:
Medium Voltage Commercial customer B has consumption of 500 kWh in his July 2018 bill
Total Consumption Rate=500 kWh x RM 0.3650=RM182.50 -
Maximum Demand (kW) / Kehendak Maksima
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 kW amount charged to customer is based on
Recorded MD (kW) x *MD rate
*Please refer the rates in Pricing & Tariff.
For more information, refer to Maximum Demand FAQ.
Example:
The amount payable by a Tariff C2 customer registering 100kW of MD for a particular month
kW Charges=100kW x RM45.10/kW=RM 4,510Few 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
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Temporary Load Charges / Bekalan Sementara
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.
Example:
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
Temporary Load Charge=(Consumption Charges + ICPT) x Temporary Load Charge Rate=(55.20 + 1.30) x 33%=RM 18.65*Rate may varies every 6 months
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Minimum Monthly Charges / Caj Minima Bulanan
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)Example 1:
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
Minimum monthly charges=RM600 – RM (5.00 + 45.00 – 0.50)=RM550.50Example 2:
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
Minimum monthly charges=1.26667 x RM7.20=RM9.12 -
Imbalance Cost Pass Through (ICPT)
Imbalance Cost Pass Through (ICPT) is a mechanism under the Incentive Based Regulation (IBR) framework which allows for TNB, as the utility, to reflect changes in fuel and other generation-related costs in the electricity tariff. This is because these costs are set based on benchmarked prices in the base tariff.
The implementation of ICPT, which occurs every 6 months, would reflect the actual costs in tariff in the form of rebate or surcharge. Furthermore, the impact of ICPT implementation is neutral on TNB and will not have any effect on its business operations and financial position.
Following the government's decision on the Imbalance Cost Pass-Through (ICPT) on 29 June 2024, the ICPT charges for domestic and non-domestic customers will be applicable from 1 July 2024 until 31 December 2024 as below:
Imbalance Cost Pass Through (ICPT) formula = Total kWh Consumption x ICPT Rate (RM/kWh).
Example 1: ICPT Calculation for Low Voltage Commercial, Tariff B
Consumption in April 2024 is 4,350kWh, ICPT rate is RM0.037/kWh
ICPT charge
=4,350kWh x (0.037)
=RM 160.95
Example 2: ICPT Calculation for Medium Voltage Industrial, Tariff E1
Consumption in April 2024 is 424,681kWh, ICPT rate is RM0.17/kWh
ICPT charge
=424,681 kWh x (0.17)
=RM 72,195.77
• To understand how it is calculated please visit MyElectricityBill
• For more information on what is ICPT, please visit our FAQ page. [English | Bahasa Melayu]
• To know more about the ICPT announcement, click here
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Kumpulan Wang Tenaga Boleh Baharu (KWTBB) / RE Fund
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
Example:
Customer A have charges on the following billing components:
Consumption for 400 kWh = RM 87.20
10 % TNB Discount = RM 8.72
RE Fund (KWTBB) Surcharge=1.6% x (87.20 – 8.72)=RM 1.26 -
1% Late Payment Surcharge
When it is imposed
The penalty charge will be imposed if payment is made later than 30 days after the bill dateHow it is calculated
The amount is calculated based on 1% (simple interest) of the outstanding bill amount, multiplied by number of days outstanding.Waivers
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.Example:
Total billed amount: RM1,000.00
Bill date: 1 May 2018
Date of payment: 10 June 2018
Days outstanding: 10 days
So, the penalty charge=RM1,000 x 1% x (10/30)=RM 3.33 -
Connected Load Charges (CLC) / Caj Sambungan Beban
- 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 will have to also pay for the unnecessary higher costs of electricity due to wastage and this is unfair to those who do properly declare.
- Other utilities who do not have CLC penalty, recover their demand component or fix cost via imposing contract capacity charge through their tariff rate based on consumer declaration.
- Government has recently approved enhanced terms for Connected Load Charge (CLC). In line with this, TNB will be implementing the enhanced terms starting 15th January 2021.
Consumer Category
- New Consumer:
All new medium voltage and high voltage consumers (consumers with supply voltage at 1kV and above) are subjected to CLC for a period of 6 years from the date the supply is connected. - Upgrading Consumer:
Any supply and/or load and/or voltage upgrade, the consumer will be levied new CLC for a period of 5 years from the date the additional supply is connected. - Change of Tenancy (COT) Consumer:
Any medium voltage and high voltage consumers who apply for open account (Change of Tenancy) to the existing premise will be subjected to CLC based on scenarios.
CLC Calculation
- New consumer
- Consumer is subjected to CLC for a period of 6 years from the date the supply is connected.
- Consumer who takes supply after 15 January 2021 has to declare the Maximum Demand (MD) in phases (for CLC calculation purposes) for year one (1) until year four (4) upon supply application. Total MD declared will be used to calculate CLC for year five (5) and six (6). Kindly complete this form CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and attach it during the Move In process.
- CLC is applicable when the actual MD recorded on any month is less than 85% of the MD declared in phases during year 1 until year 4 and less than 75% of the total MD declared for year 5 and year 6.
- The method in determining Reference Maximum Demand* for calculating CLC are as follows:
- CLC is applicable when MD recorded < Reference MD
- If MD recorded is higher than MD declared (Highest Recorded MD, RMD), the RMD will replace the MD declared for the year. Reference MD will be calculated using the new MD declared
- Upgrading consumer
- Consumer is subjected to the new CLC for a period of 5 years from the date the additional supply is connected.
- Consumer has to declare the MD in phases for year 1 until year 3 (for CLC calculation purposes) once during supply application. Total MD declared will be used to calculate CLC for year 4 and year 5. Kindly complete this form CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and attach it during the Move In process.
- CLC is applicable when the actual MD recorded on any month is less than 85% of the MD declared in phases during year 1 until year 3 and less than 75% of the total MD declared for year 4 and year 5.
- The method in determining Reference Maximum Demand* for calculating CLC are as follows:
Year Reference Maximum Demand 1 85% x [Declared MD Year 1 or Highest Recorded MD, whichever is higher] 2 85% x [Declared MD Year 2 or Highest Recorded MD, whichever is higher] 3 85% x [Declared MD Year 3 or Highest Recorded MD, whichever is higher] 4 75% x [Total Declared MD or Highest Recorded MD, whichever is higher] 5 75% x [Total Declared MD or Highest Recorded MD, whichever is higher] Note:
- CLC is applicable when MD recorded < Reference MD
- If MD recorded is higher than MD declared (Highest Recorded MD, RMD), the RMD will replace the MD declared for the year. Reference MD will be calculated using the new MD declared
- COT consumer
There are some scenarios in determining the period of CLC.
- Should the previous consumer has ended the CLC period:
- If the new MD declared by a new consumer is equal or lower than previous MD, no CLC will be imposed to the new consumer;
- If the new MD declared by a new consumer is higher than previous MD, the consumer will be subjected to the new CLC for a period of 6 years from the date of COT (refer to New Consumer terms)
- Should the previous consumer still subject to CLC:
- If the new MD declared by a new consumer is equal to previous MD, consumer may choose one of the following options:
- Continue existing CLC table; or
- Re-declare the MD once by phases for the remaining years (except for the remaining 2 years) during supply application. Subject to eligibility and based on the new CLC policy.
- If the new MD declared by a new consumer is lower (within same voltage level) or greater than previous MD, the consumer will be subjected to the new CLC for a period of 6 years from the date of COT (refer to New Consumer terms)
Kindly complete this CLC Form 1 for MD declaration in phases for CLC calculation purposes (whenever applicable) and attach it during supply application.
- If the new MD declared by a new consumer is equal to previous MD, consumer may choose one of the following options:
- Should the previous consumer has ended the CLC period:
- Existing consumer
- Existing consumers who take supply before 15 January 2021 and still within CLC period are allowed to re-declare MD by phases once in year 1-4 (applicable for consumers who are subjected to CLC for 6 years) or Year 1-3 (applicable for consumer who are subjected to CLC for 5 years) based on the new CLC policy.
- New MD declared will be effective from the next billing cycle and no adjustment will be made to the previous CLC penalties.
- Existing consumers who are still within the CLC period requesting to redeclare MD in Year 5-6 (applicable to consumer who are subjected to CLC for 6 years) or Year 4-5 (applicable to consumers who are subjected to CLC for 5 years) are subjected to additional charge as per existing policy.
- To proceed with the application, kindly download and submit a completed CLC Form 2 to tnbcareline@tnb.com.my
Year Reference Maximum Demand* 1 85% x [Declared MD Year 1 or Highest Recorded MD, whichever is higher] 2 85% x [Declared MD Year 2 or Highest Recorded MD, whichever is higher] 3 85% x [Declared MD Year 3 or Highest Recorded MD, whichever is higher] 4 85% x [Declared MD Year 4 or Highest Recorded MD, whichever is higher] 5 75% x [Total Declared MD or Highest Recorded MD, whichever is higher] 6 75% x [Total Declared MD or Highest Recorded MD, whichever is higher] Note:
Charges
- New Consumer:
- Total MD declared for the development: 10,000 kW MD declared in phase for CLC calculation:
Year 1 : 2,000 kW
Year 2 : 5,000 kW
Year 3 : 7,000 kW
Year 4 : 8,000 kW
- Upgrading Consumer:
Existing MD : 10,000 kW
Additional MD : 5,000kW
Total MD declared for the whole development: 15,000kW
MD declared in phase for CLC calculation:
Year 1 : 9,000 kW
Year 2 : 11,000 kW
Year 3 : 13,000 kW
- 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 customers with peak/off-peak tariff
- Opting for any promotional scheme offered by TNB relating to MD such as Sunday Tariff Rider Scheme (STR) and Enhanced Time of Use Tariff (ETOU)
- Starts motor/equipment in stages or during off-peak period
Year MAXIMUM DEMAND DECLARED FOR CLC REFERENCE MAXIMUM DEMAND (RMD) ACTUAL MAXIMUM DEMAND(AMD)** CLC PENALTY(RM) 1 2,000kW 85% x 2,000kW = 1,700kW 1,200kW RM8.50 x (1,700kW – 1,200kW)= RM4,250 2 5,000kW 85% x 5,000kW = 4,250kW 4,800kW No penalty. AMD > RMD 3 7,000kW 85% x 7,000kW = 5,950kW 5,250kW RM8.50 x (5,950kW - 5,250kW) = RM5,950 4 8,000kW 85% x 8,000kW = 6,800kW 7,000kW No penalty. AMD > RMD 5 10,000kW 75% x 10,000kW = 7,500kW 8,000kW No penalty. AMD > RMD 6 10,000kW 75% x 10,000kW = 7,500kW 8,200kW No penalty. AMD > RMD **Assumption: Actual Maximum Demand (MD) recorded in 1 month within a CLC year
Year MAXIMUM DEMAND DECLARED FOR CLC REFERENCE MAXIMUM DEMAND (RMD) ACTUAL MAXIMUM DEMAND(AMD)** CLC PENALTY(RM) 1 9,000kW 85% x 9,000kW = 7,650kW 8,500kW No penalty. AMD > RMD 2 11,000kW 85% x 11,000kW = 9,350kW 9,500kW No penalty. AMD > RMD 3 13,000kW 85% x 13,000kW = 11,050kW 10,700kW RM8.50 x (11,050kW - 10,700kW) = RM2,975 4 15,000kW 75% x 15,000kW = 11,250kW 11,200kW RM8.50 x (11,250kW - 11,200kW) = RM425 5 15,000kW 75% x 15,000kW = 11,250kW 12,000kW No penalty. AMD > RMD **Assumption: Actual Maximum Demand (MD) recorded in 1 month within a CLC year
Few activities could be carried out by customers that assist in reducing MD charges such as:
- Total MD declared for the development: 10,000 kW MD declared in phase for CLC calculation:
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Welding Set Surcharge / Caj Alat Kimpal
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.
For more information, refer to FAQ.Example:
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 Surcharge=67.86 kVA x RM3.00=RM 203.58Welding Set Load (kVA)40 -
Power Factor Surcharge / Caj Angkadar Kuasa
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 Power Factor
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 0.01 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 0.01 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]
For more information, refer to Power Factor FAQ.Example 1:
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
ICPT (RM)=3,500 x RM 0.0135=RM 47.25Power Factor surcharge=[[{(0.85 – 0.75)/0.01} x 1.5%] + [{(0.75 = 0.73)/0.01} x 3%]] x (RM 1,531.30 + (RM 47.25))=RM 331.50Example 2:
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
ICPT (RM)=3,500 x RM 0.0135=RM 47.25Power Factor surcharge=[{(0.85 – 0.80)/0.01}x 1.5%] x (RM 1,531.30 + (RM 47.25))=RM118.39 -
10% TNB Discount
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.
Example :
The April 2018 bill for Sek Keb A shows
Consumption charges (kWh) in RM = RM231.80
ICPT (RM 0.0135) = RM 8.11
Diskaun TNB=10% x (RM231.80 + RM 8.11)=RM 23.99 -
Prorate Factor
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.
Example :
Low Voltage Customer receives Jan 2018 bill with 38 days billing period with consumption 850 kWh
Proration Factor=38/30=1.26667Consumption block (default) Usage (kWh) - Prorated Rate (RM/kWh) 200 200 x 1.26667 = 253 0.4350 > 200 850 – 253 = 597 0.5090 Total Consumption Rate=(253 x 0.4350) + (597 x 0.5090)=RM 413.87