NEM is a system that lowers your electricity bills considerably! You just need to install a solar PV (photovoltaic) system for your household use, and any energy (kWh) you generate and export to the grid will offset the energy you use from TNB during the billing period.
1st Jan 2019. It is applicable to all existing NEM consumers.
It means that every 1kWh you export to the grid will contra with 1kWH you consume from the grid at current published rates. Charges are in descending order, starting from the highest applicable rate.
All registered customers of TNB in Peninsular Malaysia. As long as your name or your company name appears on the TNB bill, you are eligible.
You can apply if you have a Solar Photovoltaic (PV) panel, and are in any of the following categories
If you have a ground-mounted system, the installation must be within the compound of your premises, and must be approved by the Energy Commission.
You can apply via our eNEM system. For NEM application submission, please appoint SEDA’s Registered PV Service Provider (RPVSP) first. Click here for details
No. But any excess electricity you export to the grid can be rolled over for a maximum of 24 months from the start of NEMCD (or December of the following year.
This is an agreement between 3 parties:
For a small service fee, TNB will provide the service of billing, collection and remittance of the payments you make to the solar investor/lessor. Businesses supported by SARE includes solar leasing, PPA (power purchase agreement) or a hybrid of both. For more information please click here
12 months from the date of NEM is approved until the date of proposed NEM contract with TNB. If not settled within that time, the quota will be offered to other potential NEM applicants
These are required:
Optional: You may install a check meter if you wish, to measure the electricity export (if applicable). This meter must be the same or equivalent to the standards of the consumer meter installed at the premises by TNB.
Yes, as long as you are a customer of TNB. The basis is always your electricity bill. Please ensure you are a registered customer of TNB (your name/ company as appeared in the TNB bill), only then you are eligible to participate in NEM.
No. But for PV system with capacity above 72 kWp, generation license (private), from ST is required and subject to complying with the relevant rules under the Electricity Supply Act (ESA). For details, please clickhere
Yes, as long as your company is a customer of TNB.
Currently, there are fiscal incentives offered to eligible companies in the form of Green Technology Incentive by Malaysia Investment Development Authority (MIDA), available until 2020. Click here for details.
There is no tenure period between the new NEM and the old NEM. The NEM contract will remain in effect unless terminated by either party, or if there is a cancellation of the main electricity contract.
No cash is paid out, but any extra solar power you generate can roll over within 24 months from the start of NEM consumer’s billing system.
The capital for installation will be provided by the investor. Click here for their T&C
This will be done only through indirect connection, i.e. within your own internal distribution board.
This is a study of the technical effects on the Distribution Licensee’s electricity distribution network. It also establishes technical and safety requirements that may be necessary for the installation.
The requirement is based on kWp of installation as below:
Fee of Study (RM)
1 – 72 kWp
72 kWp – 180 kWp
> 180 kWp – 425 kWp
> 425 kWp – 1 MWp
ST license is only applicable for solar PV system installation:
Any person who uses, works or operates the installation will require a license as stipulated under the ST “Guidelines on Licensing Under Section 9 of the Act”
FiT pays you for the extra electricity your solar PV system produces, that you don’t use, and instead goes back into the grid. FiT is a system under the Renewable Energy Policy and Action Plan and the Renewable Energy Act 2011 to pump up the production of renewable energy in Malaysia up to 30 megawatts.
The objective of the FiT scheme is to encourage people to participate in renewable energy so we can decrease our carbon emissions and at the same time save money. The FiT scheme has been a great success in many countries including Germany and Spain, and is a major reason behind Renewable Energy growth.
The following RE resources will be eligible for FiT:
You can download the application guidelines here
Applications can be made via SEDA Malaysia’s official website. Please check SEDA Malaysia’s website regularly for notification on the application guidelines.
The FiT System provides a fixed payment from distribution licensees for every kilowatt hour (kWh) of renewable energy generated and a guaranteed minimum payment for every kWh exported to the grid. As a clean energy “generator”, you sell clean electricity for a fixed number of years. The exact duration will depend on the type of renewable resource you use to generate electricity.
The FiT System is managed by the Sustainable Energy Development Authority Malaysia SEDA Malaysia. SEDA is a statutory body under the Ministry of Energy, Green Technology and Water, established under the Sustainable Energy Development Authority Act 2011.
The Energy Commission is the sole body regulating and promoting all matters relating to the electricity and gas supply industries in Malaysia. Given its sizeable portfolio, the Energy Commission would face a constraint in resources if it is expected to also discharge the full functions of a feed-in tariff implementing agency. This is why SEDA Malaysia has been set up as an agency dedicated to serving as a one stop renewable energy centre.
Indigenous means renewable resources within the country and not imported from neighbouring countries.
No, currently, there is no FiT for electricity generated using solar thermal resources.
No, currently, there is no FiT for electricity generated by wind.
The rates for various renewable resources as well as their individual effective periods and degression rates are in the schedule to the Renewable Energy Act 2011. You can refer to SEDA for details.
Yes, there is a maximum amount that you are allowed to generate under the FiT system. The quota depends on the type of renewable resources their capacity.
Grid parity is when the cost of producing electricity from renewable resources is the same or cheaper than electricity produced from fossil fuels or nuclear energy. Our goal is to reach grid parity with different renewable energy technologies.
The displaced cost under the Renewable Energy Act 2011 is the cost of generating and supplying electricity from conventional fossil fuel sources up to the point of interconnection with the consumer. It will not affect potential renewable energy developers and NO, you do not have to deduct this from your FiT rates.
The displaced cost of electricity is only relevant to distribution licensees and the Authority where on a monthly basis, the distribution licensee will claim the positive difference between the FiT payment and the displaced cost, for all renewable energy generated power, from the Authority.
Tariff degression is like an “early bird” reward. It means that every year, the renewable energy tariff is reduced. The rate depends on the maturity of the technology and its potential to reduce cost.
Let’s say, you install a solar PV system in 2019, and sign an agreement with TNB with a FiT rate of RM1.75 per kWh for 21 years. This means you will be selling your PV electricity at RM1.75 per kWh for the next 21 years.
Let’s say, one year later your neighbour decides to follow you and sign an agreement with TNB. The FiT rate would have been reduced by 8%, which is RM1.61 per kWh. So, your neighbour will be selling his/her PV electricity at RM1.61 per kWh for the next 21 years
MWe chose this system because it is effective and efficient in developing new markets for renewable energy. This system is simple, with low administrative costs.
Germany was the first country to adopt the FiT System. In the first 10 years, they increased their renewable energy capacity and became the world leader in renewable energy which was 16.1% of their total electricity consumption! They also created 300,000 green jobs.
Other countries that have used it with much success:
USA, Australia, China, Brazil, Greece, Iran, Israel, South Korea, South Africa, Taiwan, India, Mongolia, Thailand, Philippines.
Yes, it is taxable. Any exemption will depend on future Government policies. MESTEXX is monitoring the progress of renewable energy growth in the country and conducting analyses before putting forth any policy recommendation on this matter.
Foreigners aged 21 and above can apply for FiT for renewable energy installation that utilises solar PV technology with a capacity of up to 72 kW. A company incorporated in Malaysia having foreigners, holding no more than 49% of voting power or the issued share capital of such company, may also apply.
It is stated in the National Renewable Energy Policy & Action Plan that the FiT System is to support local Malaysians.
Yes, but the equity shareholding is capped at a maximum rate of 49% if it is in its area of jurisdiction.
Yes you can, but only if your community is serviced by a distribution licensee.
It’s possible, but there are certain criteria you need to fulfill in order to qualify.
Please contact SEDA Malaysia
It is a worldwide practice that replaces old meters that have exceeded its lifespan.
There are two meters with different lifespans:
The meter is owned by TNB. However, you are responsible for making sure the meter is tampered with.
Since 2004, all meters are electronic.
The electronic meter is very accurate, so your charges will be according to the electricity you use. If you find that it is a little higher, then it could be because the aged meter was not accurate.
These are the possible reasons:
Or it may not be that the meter is not accurate, but it may be due to:
According to the Electricity Supply Act 1990, aged meters must be replaced with new ones for accurate billing.
TNB has information on all meters and their ages.
Yes, but only for about 15 minutes to 1 hour.
Both are equally accurate.
It will be replaced by TNB appointed contractors, fully supervised by TNB staff. The contractors will carry a TNB/NIOSH ID, while TNB staff will be wearing TNB uniform and carry a TNB staff ID pass.
Normal working days (Monday – Friday) Weekends are by appointment only
Yes, you will receive written notice at least 48 hours before the replacement is carried out.
Yes, according to the Electricity Act 1990, TNB can enter your property to replace the meter.
Please contact the person in charge stated on the letter, to set an appointment.
Yes, both will be included in your next electricity bill, but charges will not be double.
Every TNB meter is calibrated and tested in accordance to Malaysian Standards ISO/IEC 17025:2005. Furthermore, since 2013, all meters have gone through additional vigorous testing by SIRIM and awarded with a Product Certification.
It is a guideline for the approval, testing and initial verification of electricity meters before they are sent out and installed. This guideline is governed by the Energy Commission.
All meters are calibrated and tested to Metering Guideline under the governance of the Energy Commission.
All meters installed meet the Energy Commission Metering Guideline.
All meters are calibrated and accredited under Skim Akreditasi Makmal Malaysia (SAMM) based on MS ISO/IEC 17025:2005 issued by
Standards Malaysia under purview of the Ministry of Science, Technology & Innovation (MOSTI).
All meters are calibrated and comply to International Standards (MS IEC 62053-11, MS IEC 62053-21, MS IEC 62053-22, MS IEC 62053-23).
All meters comply to International Standard OIML (e.g. Harmonics Test and Reliability Test).
It will have a ‘SIRIM/ST’ sticker on it.
Yes, the Energy Commission monitors meter replacements through:
You will be notified after the meter replacement. Please contact TNB CareLine for details.
Kindly browse www.tnb.com.my and click Save Energy>Energy Audit Calculator>Start
No. Just login with the same ID and password.
Please click below:
To check your bill, Register/Login to myTNB and click on Support > Bill & Payments
Please key in your myTNB User ID and Password correctly again. You have a maximum of 5 attempts. After 5 unsuccessful attempts, you will be redirected to Forgot Password page automatically to reset your password. Even though your myTNB Portal access has been blocked, you can still access your account(s) via myTNB App!
The status of the transaction, whether ‘successful’ or ‘failed’, will be displayed. To verify the transaction, you can check the payment history of your account(s). We will provide you with a printable online proof of your transaction.
Clicking the ‘back’ button at any stage will bring you back to the previous page. But if you have submitted a transaction and submission was confirmed, then it is accepted and not deleted.
The payment transaction will be recorded in our system, whether successful or not. If unsuccessful, you will need to resubmit. Please resubmit only when you know why it failed. For example, if there’s insufficient funds, etc. Wait a few minutes, then try again. You can also call TNB CareLine at 1-300-88-5454 for assistance.
This is to protect your account from unauthorised users when your device is left unattended. It has a built-in security feature that automatically times out after 30 minutes (for non-payment transactions)
Email the name and mobile number you registered with us to [email protected] and we will retrieve your myTNB Portal User ID for you.
You can reset your password by clicking on ‘Forgot Password’. You can continue using your existing myTNB Portal Login ID after resetting your password.
Please call our TNB CareLine at 1-300-88-5454 to check if the mobile registered with us is the same one.
No. You cannot use the same User ID. Please create a new one.
The activation email we send to you lasts only 24 hours. Once it has expired, you will need to repeat the process. But you can still use the same mobile number and email address to re-register. If you can’t activate your login account, please call TNB CareLine at 1-300-88-5454 for assistance.
OTP stands for ‘One-Time-Password’. It is a randomly generated code sent to your registered mobile number or devices for validation of your online transaction. It is a security measure to ensure that nobody else can access your account.
Please inform TNB CareLine at 1-300-88-5454 immediately.
No. Each OTP sent to you is valid for one time use only.
These may be the possible reasons:
Use the second OTP sent to your phone.
It depends on the traffic volume of your mobile service provider.
Yes, as long as your phone is connected to mobile data.
Just click on the resend link to request a new OTP. The new OTP will be sent to your registered mobile number via SMS.
We share your concerns and TNB does have procedures in place adhering to the guidelines provided by the Ministry of Health (MOH). All TNB staff are required to perform a health screening test prior to any site visit, observe the standard of social distancing and put on a face mask when they’re at a customer’s premise.
In support of Malaysia’s Digital Transformation, it is of utmost importance for every household to change to Smart Meter. Therefore, the upgrade is necessary to align with the government’s initiative towards realising Industrial Revolution 4.0.
The Smart Meter records how much electricity you use and sends the data back into TNB’s back end system daily. You can then view your half hourly daily usage via myTNB mobile app and myTNB web portal the following day. Monitoring your usage patterns allows you to be more energy efficient and better manage costs.
The Smart Meters have been certified by the Energy Commission to ensure that they meet all international standards, including accuracy. All meters are calibrated and certified against the Metering Guideline under the purview of the Energy Commission.
No, you will not. Smart Meter is safely powered from TNB’s electricity supply.
TNB’s Smart Meter and its installation is Free of Charge (FOC)
TNB contractors can be recognised by their orange uniform labelled “Kontraktor TNB”. They will display their identification cards (ID) and present their ID to you upon request.
You may contact TNB Careline at 1300-88-5454 to verify identification of the contractors if needed.
Yes. Your power will be switched off briefly (30 to 60 minutes) at the point of changing your meter.
We will leave a door hanger at your gate and return another day. If you would like to schedule an appointment, kindly contact TNB Careline at 1300-88-5454.
Kindly contact us via TNB Careline at 1-300-88-5454. Issue assessment and meter replacement would be carried out if necessary.
Yes! The Smart Meter have been certified by the Energy Commission under the Electricity Supply Act 1990 to ensure that it meets all international standards. It has also been approved by SIRIM & SKMM.
Yes, the Smart Meters and the networks adhere to Malaysia’s Personal Data Protection Act (PDPA). TNB also ensure the cyber security encryption, measures and features are implemented in the Smart Meter system and network. We are constantly assessing our network to improve the security controls and no systems can be compromised.
You will continue to receive your physical bill. Manual reading by our meter readers will be done until the meter is enabled for automatic billing within the first three months. At the same time, you can also view your monthly bill through myTNB app.
No, if your usage is consistent upon installation. Your electricity bill will be based on your total usage and tariff block. Higher block tariffs indicate a higher volume of increase in usage.
It is calculated separately in the bill to indicate the actual cost of electricity that you should pay for your electricity consumption in the absence of the Government’s fuel subsidy.
It’s calculated based on this formula:
It is revised based on the revision of the regulated price of pipes gas every 6 months by the Government.
Effective 1st July 2018 until 31st December 2018:
Meter Irregularity is when the meter is not recording the electricity consumption correctly. This can be due to hardware, software or human error, which includes:
The calculation is based on your consumption record and history, available technical evidence and other relevant information.
No, of course not. TNB will bear the cost of meter replacements unless you are responsible for damaging the meter, or for neglecting it during a fire or flood.
Please make a report and we will make the adjustments. However, we can only go as far back as the previous 3 months’ bills. After calculating the irregularities, we will make the adjustment in your next bill.
You can report it through any of the following channels:
There are two ways:
It is generally measured by the shape of the voltage waveforms supplied at your meter. The voltage waveforms may reduce, increase, fluctuate or distort due to various circumstances.
Any type of electrical equipment can be affected. Standard systems like lighting, air-conditions, fans, and communications equipment are often affected. The most costly power quality problems often happen to sensitive high-tech equipment such as computer controlled equipment and data systems.
Go through this checklist:
The most common causes are lightning strikes, equipment failures, third party intrusion, weather conditions, and operating on non-linear and fluctuating loads.
Some of the international standards that explain the power quality phenomenon are:
The ICPT rate for domestic customers are as follows:
The ICPT surcharge for Non-domestic customers is implemented by phase:
This ICPT surcharge will be applicable to all non-domestic customers, at the ICPT rate of 2.00 sen/kWh.
No surcharge will be applicable to domestic customers, and hence the ICPT rate is set at 0 sen/kWh. Domestic customers with monthly consumption of 300kWh (RM77.00) and below is not subjected to ICPT mechanism.
Domestic customers with monthly consumption of 300kWh (RM 77.00) and below were not affected in the previous tariff reviews i.e:
In addition, the government allocates RM 40.00 electricity subsidies specifically to poor hardcore domestic customers who are registered with the e-Kasih program. The customers under this group will not be affected by ICPT implementation.
ICPT is a mechanism under the Incentive Based Regulation (IBR) framework which allows TNB as the utility to reflect changes (either increase or reduction) in fuel and other generation-related costs in the electricity tariff every six (6) months in the form of rebate or surcharge.
The major factor contributing to the increase in ICPT cost for this period is the increase in average coal price to USD77.35/metric tonne, as compared to the benchmark coal price set in the base tariff at USD75/metric tonne. In addition, there is a continuous increase of RM1.50/mmBTU in the regulated piped gas price from RM27.20/mmBTU in the benchmark price set in the base tariff to RM28.70/mmBTU. This is based on Cabinet’s decision on 3rd May 2017, allowing the adjustment of the regulated piped gas price for the power sector with an automatic increase of RM1.50/mmBTU every six (6) months until it reaches Reference Market Price for a period of three (3) years from 2018 until 2020.
Suruhanjaya Tenaga as Malaysia’s energy regulator determines the calculation and methodology of the ICPT, subject to Government approval on a 6-monthly basis.
Kumpulan Wang Industri Elektrik (KWIE) is a fund that is controlled by Suruhanjaya Tenaga (ST). The objective of setting up KWIE is to manage or control the impact of electricity tariffs on consumers.
There are two ICPT key components:
The ICPT is calculated based on an estimated actual fuel cost and generation specific costs for a particular six (6) months period against the corresponding baseline costs in the Base Tariff.
Since its implementation in 2014 until June 2018, a total of RM6.3 billion of ICPT rebate and subsidy has been passed through to electricity customers in Peninsular Malaysia. Due to the increase in average coal price and the continuous increase of RM1.50/mmBTU in the regulated piped gas which has resulted to higher fuel and generation cost from July 2018 to June 2020, a total of RM3.6 billion of ICPT surcharge has been passed through to non-domestic electricity customers in Peninsular Malaysia.
The ICPT charge on your electricity bill may differ from your neighbour's as the ICPT charge depends on your energy consumption (kWh) in a month. Therefore, this amount varies from one customer to another and from month to month, depending on the energy consumption.
To reduce the ICPT impact, the consumers are advised to implement the electricity saving measures as recommended by the Suruhanjaya Tenaga.
The government has provided a user-friendly ICPT Calculation platform through the www.myelectricitybill.my portal on the Suruhanjaya Tenaga official website (www.st.gov.my) for further details on the ICPT implementation. The ICPT calculator will help customers to estimate ICPT rate on their monthly electricity bills beginning January 2019.
The purpose of this ICPT Calculator is to educate customers to be more sensitive and alert to the changes in fuel prices and foreign exchange rates in the market. Customers can key in the coal and gas price forecasts as well as the fuel price & forex forecast to estimate the cost of ICPT at the next tariff adjustment.
TOU tariff scheme offers you different rates at different times of the day. For example, tariff rates during off-peak hours are lower than peak hours.
ETOU tariff scheme offers you 3 time zones with different tariff rates – Peak, Mid-Peak and
Off-Peak rates for Monday - Friday.
Off-Peak rates apply to Saturday, Sunday & Public Holidays.
Maximum Demand charge has 2 time zones with Peak and Mid-Peak rates.
|Monday to Friday||3 time zones with 3
energy rates for Energy charge: Peak, Mid-Peak and Off-Peak
2 time zones with 2 rates for Maximum Demand charge: Peak and Mid-Peak
|Weekends and Public Holiday||1 time zone with 1
energy rate : Off-Peak rate only
Maximum Demand Charge is waived during Saturday, Sunday, and Public Holidays
Note: ETOU will only include these fixed Public Holidays: New Year (1 January), Labour Day (1 May), Merdeka Day (31 August), Malaysia Day (16 September) & Christmas (25 December)
TOU Time Zones are classified as follows:
|Enhanced Time of Use Time Zones|
|Mid-Peak||08:00 - 11:00 hours|
|Peak||11:00 - 12:00 hours|
|Mid-Peak||12:00 - 14:00 hours|
|Peak||14:00 - 17:00 hours|
|Mid-Peak||17:00 - 22:00 hours|
|Off-Peak||22:00 - 08:00 hours|
The ETOU scheme will be offered as an option based on the schedule below:
|Implementation of Enhanced Time of Use (ETOU) Schedule|
|Starting from 1 January 2016||
Commercial customers at medium voltage (tariff C1 and C2)
Industrial customers at medium and high voltages (tariff E1, E1s, E2, E2s, E3 and E3s)
|Starting from 1 January 2017||Industrial customers at low voltage (tariff D and Ds)|
Note: However, low voltage Industrial customers may opt for the ETOU scheme starting from 1st January 2016, provided that they would upgrade to medium voltage tariff at their own cost.
TOU tariff scheme is offered to MV and HV customers under these categories:
ETOU tariff scheme will be offered as an option to LV, MV and HV customer under these categories:
Electricity usage is different at different times of the day, that’s why electricity production cost will also change according to time of day. During peak hours there are more people consuming electricity, therefore, the cost of producing electricity is higher. Tariff rates are cheaper during off-peak or mid-peak hours due to lower demand.
No. The ETOU scheme is offered as an option.
No. TOU customers must apply to TNB for the ETOU tariff scheme.
ETOU gives you the opportunity to manage your consumption of electricity in a cost-effective way.
You can lower your electricity bills by taking advantage of the mid-peak and off-peak hours!
You must commit to the ETOU scheme for at least 6 months. After that, you are free to cancel and go back to your previous tariff scheme, but you will be have to bear certain costs incurred.
No. SIT customers are offered the same ETOU rates offered to non-SIT customers.
No. You have to subscribe to one or the other, but not both.
No. ETOU will be offered as an option for eligible customers.
Customers must choose the appropriate tariff scheme that best suits their energy consumption.
Customers who wish to enroll for ETOU scheme can submit formal application stating TNB Account to respective TNB Kedai Tenaga.
myGreen+ scheme is introduced as an option for customer who are interested to buy green energy.
With the implementation of myGreen+ scheme, the consumers will have an option to purchase green energy without having to install their own solar rooftop or other renewable energy installations.
myGreen+ scheme is offered to all consumers and they may opt to subscribe to myGreen+ in 100 kWh blocks at the rate of 8 sen/kWh.
Consumers enrolled in myGreen+ scheme will receive a myGreen+ subscription certificate issued by TNB upon subscription.
Subscribing to myGreen+ means supporting environmentally friendly and green agenda such as to meet sustainable targets, offsetting carbon credit, and for green (“eco-friendly”) brand image with the issuance of myGreen+ Subscription Certificate by TNB.
Your purchase of green energy supports growth of the renewable energy industry instead of electricity produced from natural gas or coal-fired power plants.
Electricity generated by renewable energy is not directed to a specific home or business. When you subscribe to myGreen+, TNB will match 100% of your subscription of myGreen+ from renewable energy instead of using energy from natural gas or coal-fired power plants. This green energy enters the electric system daily and reduces the amount of energy needed from fossil-fuel based power plants. As more consumers subscribe to myGreen+, the amount of fossil fuel purchases can decrease.
The resources for producing electricity for the purpose of myGreen+ scheme will be from the renewable energy resources as determined and approved by the Energy Commission from time to time.
Consumers who opt for myGreen+ subscriptions will pay:
Example for billing calculation when electricity consumption of myGreen+ Consumer is more than its subscription of green energy:
Electricity consumption = 800,000 kWh
myGreen+ subscription = 100,000 kWh
Below is an illustration for the calculation of the sum payable by the myGreen+ Consumer:
Electricity consumption = 50,000 kWh
myGreen+ subscription = 100,000 kWh
Below is an illustration for the calculation of the sum payable by the myGreen+ Consumer:
You may opt to subscribe to myGreen+ in 100 kWh blocks at the rate of 8 sen/kWh. Application can be made via MyTNB Portal or visit ours nearest Kedai Tenaga.
Term and conditions for myGreen+ scheme can be access via myTNB’s website at myGreen+
Customers may subscribe to the green energy in blocks of 100kWh subject to myGreen+ Quota. The minimum subscription is 100kWh.
The availability of myGreen+ Quota for subscription can be viewed on myTNB’s website at myGreen+
The total myGreen+ subscription must not exceed the allocated monthly myGreen+ Quota as published on myTNB’s website at myGreen+
Customers can increase, reduce or terminate their green energy consumption blocks at any time after the enrolment without additional charges. Any changes to the subscription can be made via our MyTNB Portal or visit ours nearest Kedai Tenaga.
MD is measured in Kilowatt (kW). It is the highest level of electrical demand monitored in a particular period usually for a month period. Maximum Demand for any month shall be deemed to be twice the largest number of kilowatt-hours (kWh) supplied during any consecutive thirty minutes in that month.
During peak hours, when a great number of people are consuming electricity, TNB would need to be able to generate, transmit and distribute electricity sufficiently in order to meet the high demand, since electricity cannot be stored. MD charge was designed to encourage customers to control their electricity usage at peak hours, and maybe shift their usage to off-peak when the tariff rate is cheaper. MD charge is applied by almost all electric utility companies in the world.
The MD charge is a very good way to encourage customers to use electricity more efficiently. It is a charge imposed on large customers that consume a huge amount of electricity. But domestic consumer that use low amounts are excluded from paying MD charges.
Here are some ways for you to reduce MD charges:
Power Factor is a method to gauge the efficiency of electricity usage. It is measured from 0 to 1. A higher number means more efficient. Low power factor shortens the lifespan of electrical appliances and causes power system losses to TNB
|KW||Working Power (also called Actual Power, Active Power or Real Power). It is the power that powers equipment and performs useful work.|
|KVAR||Reactive Power. It is the power which magnetic equipment such as transformers, motors and relays need to produce the magnetizing flux.|
|KVA||Apparent Power. It is the vectorial summation of KVAR and KW.|
Let’s look at a simple analogy in order to better understand these terms. Let’s say you are at a park and it is a hot day. You order a glass of a carbonated drink. The thirst-quenching portion of the drink is represented by KW. Unfortunately, along with your drink comes a little bit of foam. The foam does not quench your thirst. This foam is represented by KVAR. The total content of your glass, KVA, is this summation of KW (the carbonated drink) and KVAR (the foam).
|Power Factor is the ratio of Working Power to Apparent Power. Power Factor = KW / KVA|
Looking at our carbonated drink analogy, power factor is the ratio of carbonated drink (KW) to the carbonated drink plus foam (KVA). Power Factor = KW / (KW + KVAR) = Carbonated drink / (Carbonated drink + foam)
|Thus, for a given
i. The more foam you have, the lower your power factor.
ii. The less foam you have, the higher your power factor.
For efficient usage of electricity, power factor must approach 1.0. A Power factor that is less than 0.85 shows inefficient use of electricity.
Low Power Factor is caused by inductive loads which causes the current to lag. Examples are:
Induction loads make up a very high percent of power consumed by the commercial and industrial sectors.
Try these methods:
Benefit 1: Reduce cost.
LA facility’s low power factor forces TNB to increase its generation and transmission capacity in order to handle the extra demand. When you increase your power factor, you will use less energy, which means lower cost.
Benefit 2: Eliminate power factor surcharge.
Utility companies around the world charge customers a surcharge when their power factor is low (less than 0.95). Some utility companies will not even supply electricity to customers whose power factor is below 0.85. In Malaysia, TNB is allowed to impose a surcharge to customers whose power factor is below 0.85. You can avoid this surcharge by increasing your power factor!
Benefit 3: Increased efficiency.
Low power factor causes power system losses in your electrical system. When you improve your power factor, you reduce these losses. What’s more, reducing system losses also means you can have additional loads and be overall more productive.
Benefit 4: Increased voltage level in your electrical system.
AThis means more efficient motors. As power losses increase, you will experience a voltage drop. Excessive voltage drops can cause overheating and premature failure of motors and other inductive equipment. So, by increasing your power factor you can minimise these voltage drops and also prevent problems. Your motors will run efficiently with a slight increase in capacity and starting torque. Listen to them purr happily.
Service Tax is a tax that is charged on taxable services provided by any taxable person in Malaysia in the course of business.
Sales Tax is a single stage tax charged on taxable goods manufactured in Malaysia by a taxable person or taxable persons involved in the production of the goods. It is also charged on taxable goods imported into Malaysia.
Can TNB charge SST?
Under Service Tax Act 2018, provision of electricity is a taxable service subject to 6% Service Tax. So, yes, TNB is complied to charge Service Tax. However, not all of our customers are subjected to SST.
No. It existed before GST.
Under Service Tax Act 2018, provision of electricity is a taxable service subject to 6% Service Tax. So, yes, TNB is complied to charge Service Tax.However, not all of our customers are subjected to SST.
Residential customers are subjected to Service Tax if:
Yes. Reference can be made to First Schedule (Regulation 3) under Service Tax Regulation 2018
No, you don’t if your billing period is 28 days and above. However, if the billing period is less than 28 days, you will be charged Service Tax.
Generally the monthly billing cycle is 28 – 30 days. However, the billing period can be less than 28 days in the following situations:
No. Non-Residential customers are not under the Service Tax Act.
Yes. You will see a separate line item showing the Service Tax you have to pay. For the latest bill layout, please click here.
No. Individual street light is not taxable.
It is applicable to billing components specified as in item 10. Other services such as connection charge, supply application and meter accuracy test are not subjected to Service Tax.
No, there is no Service Tax on the 1% interest on late payment.
No, KWTBB is not taxable.
It is applicable to billing components specified as in item 10. Other services such as connection charge, supply application and meter accuracy test are not subjected to Service Tax.