Under Service Tax Act 2018, provision of electricity is prescribed as a taxable service subject to 6% Service Tax. As a registered taxable person, TNB is complied to charge Service Tax for provision of electricity.

First Schedule (Regulation 3), Service Tax Regulation 2018 clearly states the provision of electricity to any Domestic Customer excluding for the first 600 kWh for a minimum period of 28 days per billing cycle consumed by the customer.

Therefore, Service Tax (ST) at the rate of 6% will be charged in TNB electricity bills for Residential Customer with consumption more than 600 kWh @ RM 231.80 effective from 1 September 2018.

Service Tax in the bill for the month of Aug/Sept 2018 will be prorated

TNB as a taxable person have to charge the Service Tax as stipulated in the Service Tax Act 2018. The tax collected will be remitted to Royal Malaysian Custom Department.

The 28 day billing rule is applicable where the entire consumption will be charged Service Tax if the billing period is less than 28 days.

The amount of ST charged will be clearly stated in the electricity bill issued to customer for the items which are subject to ST.

The billing components related to consumption (kWh) is subjected to Service Tax are:

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.

Surcharge of RE Fund (KWTBB) applies to all customers except for domestic customers with electricity consumption of 300 kWh @ RM 77.00 and below per month.

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

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.

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.

Proration factor applied by TNB will benefit the customers whose meter is read above 31 days.

Any billing period above 31 days will be prorated.

Proration Factor = Number of billing days / 30

Prorated Factor will be multiplied with each tariff block. Customer will benefit lower rate for expanded consumption block range.

The fuel subsidy amount indicated in the electricity bill is strictly for indication/information purpose with NO monetary transaction

Fuel subsidy refers to the amount of fuel cost subsidized by the Government for a unit of electricity consumed

The amount stated in electricity bill refers to the subsidy on piped gas price only

It is calculated based on benchmark market gas price set in base electricity tariff compared to the actual piped gas price used in the current electricity tariff charged to consumers

The subsidy calculation will be revised based on the revision of the regulated price of piped gas every 6 months by the Government

The current subsidy amount effective 1st June 2018 until 31st December 2018 is 1.35 sen/kWh or RM0.0135/kWh

Formula used is as below:Consumption (kWh) x Subsidy Rate