The electric bill - it comes once a month. Most of us glance at the balance due, and make plans to pay that amount. But the electric bill is more than just the amount owed. The bill is full of information that can be useful in helping you better understand your electric usage
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. For residential customers, their usage are usually charged based on five block price rate.
The rates are as stated in Pricing & Tariff.
The unit for the consumption used is kWh.
Note: If billing period is above 31 days, proration factor applies
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 blocks as below
|Consumption block||Usage (kWh)||Rate (RM/kWh)|
Domestic Customer that requires street light for their own consumption.
The charges applicable for street lighting are as below:
|70 W||RM 0.274/kWh/day|
|150 W||RM 0.183/kWh/day|
ISL consumption is derived from below formula:
Customer has installed ISL with the below installation properties
Two 150 W bulbs
Total Number of billing days = 25 days
Customer has installed ISL with the below installation properties
Two 150 W bulbs
Total Number of billing days = 33 days
A consumer who applies for temporary supply shall be charged at the tariff rate appropriate to their category plus 33% surcharge on the current monthly bill. This is mostly applicable for construction site that requires temporary supply for their workers home.
A construction site applies for temporary supply for the workers house. The January 2018 bill will have the following billing components charges
Consumption charges (kWh) = RM55.20
ISL charges (RM) = RM12.00
ICPT* = RM1.30
*Rate may varies every 6 months
Monthly charge applicable to a consumer in the event of monthly total electricity bill (kWh) is less than RM3.00. If consumption is 0 kWh, the RM3.00 is imposed in the bill.
The formula used to determine Monthly Minimum Charges are as following:
TMCC charges – (kWh charges + Discount Amount + ICPT)
For more details, please refer to Pricing & Tariff
Customer A’s Jan 2018 bill shows usage of 0 kWh:
Consumption charges (kWh) = RM0.00
Discount TNB (10%) = RM0.00
Customer A’s Jan 2018 bill shows usage of 7 kWh:
Consumption charges (kWh) : 7 kWh x RM 0.218 = RM 1.53
Discount TNB (10%) = RM 0.15
Proration Factor (32/30 days) = 1.06667
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.
Imbalance Cost Pass-Through (ICPT) implementation for the period of 1 July 2021 to 31 December 2021 are as follows:
Previously, all customers are affected by ICPT except for Domestic customers with monthly consumption of RM77.00 (300 kWh) and below. However, for period July to December 2021, Government has decided to provide ICPT rebates to all customers including Domestic customer consuming below than 300 kWh. This is to assist the low income and vulnerable customers under this consumption band who are affected by the COVID-19 pandemic.
Imbalance Cost Pass Through (ICPT) formula = Total kWh Consumption x ICPT Rate (sen/kWh).
Consumption in August 2021 is 400 kWh, ICPT rate is – 2.00 sen/kWh or - 0.02 RM/kWh (rebate)
=400kWh x (-0.02)
Consumption in August 2021 is 200 kWh, Individual Street Light (ISL) consumption is 50 kWh, ICPT rate is – 2.00 sen/kWh or -0.02 RM/kWh (rebate)
=250 kWh x (-0.02)
=-RM 5.00 (charge is applicable for normal domestic consumption and Individual Street Light (ISL) since normal domestic consumption with below 300kWh is given the ICPT rebate)
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:
Energy Consumption (kWh)
Discounts (Service Tax will be calculated after discount)
Imbalance Cost Pass Through (ICPT)
Temporary Load Charge
For more information, you can visit Royal Malaysian Custom Department website at mysst.customs.gov.my
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
Customer A uses consumption of 400 kWh and has an Individual Street Light (ISL) attach to his account.
The KWTBB charges on his bill will show as below:
Consumption charges = RM87.20 for 400 kWh
ISL Charges = RM12.00
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
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.
Customer A receives Jan 2018 bill with 32 days billing period with consumption 400 kWh
|Usage (kWh) - Prorated||Rate (RM/kWh)|
|200||200 x 1.06667 = 213||0.218|
|100||100 x 1.06667 = 107||0.334|
|300||400 – 213 – 107 = 80||0.516|
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
Customer A used 1,865 kWh in July 2018
TNB’s discount for selected premises.
Welfare institutions (orphanage and elderly home, home for the blind and disable, spastic’s center fully funded and administered by Ministry of Women, Family and Community Development) or institutions with source of income funded by public donation under domestic category.
TNB Discount = 10% x (Consumption charges + ICPT)
|Example : Customer A|
|Consumption charges (kWh) = RM231.80|
|ICPT (-RM0.0152) = -RM9.12|
TNB discount = 10% x (RM231.80 – RM9.12)