Bill Component

Understanding Your Electricity Bill

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

HOW TO READ YOUR ELECTRICITY BILL

Your electricity bill contains a lot of information. This page will help you understand the most important billing components in your electricity bill.

Consumption Charges (kWh) / Caj Kegunaan

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

Example:

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)
200	200	0.218
100	100	0.334
300	50	0.516

Total consumption rate

=(200 x 0.218) + (100 x 0.334) + (50 x 0.516)

=RM102.80

Individual Street Light (ISL) / Lampu Jalan Individu

Domestic Customer that requires street light for their own consumption.

The charges applicable for street lighting are as below:

Wattage	Rate
70 W	RM 0.274/kWh/day
150 W	RM 0.183/kWh/day

ISL consumption is derived from below formula:

kWhISL

=Total number of bulbs x Total Number of billing days x 12 x (Wattage/1000)

ISL (RM)

=kWhISL x Rate

Example 1: Customer with billing period below 31 days

Customer has installed ISL with the below installation properties

Two 150 W bulbs

Total Number of billing days = 25 days

Unit kWh ISL

=2 x 25 days x 12 hours x (150 W/1000)

=90 kWh

ISL RM

=90 kWh x RM 0.183/kWh

=RM 16.47

Example 2: Customer with billing period above 31 days

Customer has installed ISL with the below installation properties

Two 150 W bulbs

Total Number of billing days = 33 days

Unit kWh ISL

=2 x 33 days x 12 hours x (150 W/1000)

=119 kWh

ISL RM

=119 kWh x RM 0.183/kWh/day

=RM 21.74

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 current monthly bill. This is mostly applicable for construction site that requires temporary supply for their workers home.

Example:

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

Temporary Load Charge

=(Consumption Charges + ISL Charges + ICPT) x Temporary Load Charge Rate

=(55.20 + 12.00 + 1.30) x 33%

=RM 22.61

*Rate may varies every 6 months

Minimum Monthly Charges / Caj Minima Bulanan

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

Example 1 : Customer with consumption = 0 kWh and billing period of 31 days

Customer A’s Jan 2018 bill shows usage of 0 kWh:

Consumption charges (kWh) = RM0.00

Discount TNB (10%) = RM0.00

Minimum monthly charges

=RM 3.00 – RM (0 + 0.00 – 0.00)

=RM 3.00

Example 2: : Customer with consumption = 7 kWh and billing period of 32 days

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

Minimum monthly charges should be applied

=1.06667 x RM3.00

=RM3.20

Since the consumption charges

=RM 1.53

The Monthly Minimum Charges

=RM 3.20 – RM 1.53 - RM 0.15

=RM 1.52

Imbalance Cost Pass Through (ICPT)

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:

The average Base Tariff remain unchanged at 39.45 sen/kWh;
ICPT rebate of 2.00 sen/kWh will be implemented to all Domestic Customers including Domestic Customers with monthly consumption of 300kWh and below
ICPT rebate of 2.00 sen/kWh will be implemented to all Non Domestic Customers.

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).

Example 1 :

Consumption in August 2021 is 400 kWh, ICPT rate is – 2.00 sen/kWh or - 0.02 RM/kWh (rebate)

ICPT charge

=400kWh x (-0.02)

=-RM 8.00

Example 2 :

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)

ICPT charge

=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)

Find out more in https://myelectricitybill.my or ICPT FAQ

Service Tax (ST)

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

Example 1: Customer with consumption > 600 kWh @ above RM 231.80 where billing period is 31 days (above 28 days)

Example 2: Customer with consumption < 600 kWh but billing period is 26 days (below 28 days)

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.

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

Example:

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

RE Fund (KWTBB) Surcharge

=1.6% x [(87.20+12.00) – 8.72)]

=RM 1.45

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 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.

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

Prorate Factor

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.

Example:

Customer A receives Jan 2018 bill with 32 days billing period with consumption 400 kWh

Proration Factor

=32/30

=1.06667

Consumption block (default)	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

Total Consumption Rate

=(213 x 0.218) + (107 x 0.334) + (80 x 0.516)

=RM 123.45

Fuel Cost Subsidy

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

Example:

Customer A used 1,865 kWh in July 2018

The fuel subsidy

=1,865 kWh x RM 0.0135/kWh

=RM 25.18 (For information purpose only and no financial transaction involved)

10% TNB Discount / Diskaun TNB

10% Discount

TNB’s discount for selected premises.

Who’s eligible?

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
Bill component:
Consumption charges (kWh) = RM231.80
ICPT (-RM0.0152) = -RM9.12
TNB discount = 10% x (RM231.80 – RM9.12) = RM22.27

*ICPT will be applicable depending on the rate announced by The Energy Commission

RM40 TNB Rebate / Rebat TNB RM40

RM40 Electric Bill Rebate Programme

The RM40 Electric Bill Rebate Programme is a targeted government assistance program to finance monthly electricity bills of up to RM40 to those who are underprivileged and registered in the e-Kasih system. The program was announced by the Government in 2019 Budget Speech on 2nd November 2018.

This RM40 Electric Bill Rebate Programme is a new programme introduced starting from 1 January 2019 to 31 December 2019. This programme replaces the RM20 Electric Bill Rebate Programme which ended in December 2018.

Eligibility for e-Kasih can be made at the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) Portal at https://semakanrebat.mestecc.gov.my or by contacting MyGCC at 03-8000 8000. Users can also check e-Kasih's eligibility by calling TNB Careline at 1-300-88-5454 or making a direct review at the nearby Kedai Tenaga.

For eligible e-Kasih users without TNB registered accounts, applications may be submitted to declare third-party accounts by filling in the application form at any of the nearest Kedai Tenaga.

For users who are not eligible after the review is made and wish to register in the e-Kasih program, the user is required to refer to the Federal Development Office/Federal Development Department (PPPN/JPP), Implementation Coordination Unit, Prime Minister's Department (ICU JPM) in state level / District Development Unit. Data from e-Kasih is made by survey and registered by PPPN/JPP ICU JPM Offices at state level.

To apply for a RM40 Electric Bill Rebate, the user must submit the RM40 Rebate Application Form & a copy of the Identity Card as supporting document.

Find out more on Electric Bill Rebate's FAQ