Key Highlights of the Electricity Tariff Restructuring
-
Fair & Transparent Charges
- Clear breakdown of cost components for generating and delivering electricity
- Automatic Fuel Adjustment (AFA) on monthly basis to reflect the market fuel prices and foreign exchange rates
-
Simplified Voltage-Based Structure
- Moving away from activity-based tariffs to voltage-based tariffs
- 5-tiered band pricing to 2-tiered band pricing for Domestic customers
-
Extended Time of Use (ToU)
- Longer Off-Peak periods include Saturday and Sunday
- Expansion to Domestic and Non-Domestic Low Voltage customers
-
Incentives & Rebates
- Energy Efficiency Incentives channelled to targeted groups, encouraging energy conservation
- Rebates are maintained for eligible social institutions & eKasih recipients
What does this mean for you?
Your electricity bill now features a clearer breakdown of costs, grouped into three main components:
Generation Charges
Covers the cost of generating electricity, which includes:
- Energy Charge – Fuel costs used for electricity generation
- Automatic Fuel Adjustment (AFA) – A mechanism to reflect the market fuel prices and foreign exchange rates
- Capacity Charge – Capacity payments under Power Purchase Agreements (PPA) and Service Level Agreements (SLA)
Network Charge
Covers the cost of delivering electricity to your premises, including infrastructure maintenance and upgrades.
Retail Charge
Covers the cost of customer service, billing and account management.
Automatic Fuel Adjustment (AFA)
Automatic Fuel Adjustment (AFA) will be reflected on a monthly basis in your electricity bill if there is any fluctuation in the market fuel prices and foreign exchange rates. This information will be displayed on the Energy Commission’s website.
Automatic Fuel Adjustment (AFA)
For the period of 1 July 2025 to 31 July 2025
To Be Announced
Simplified Voltage-Based Structure
Under the Electricity Tariff Restructuring, customers are
categorised based on the voltage level of electricity supply (Low,
Medium & High Voltage).
You may refer to the table below for the new tariff category
mapping.
Voltage Level Classifications for Tariff purposes
Low Voltage
Extra Low Voltage
Medium Voltage
High Voltage
Extra High Voltage
Tariff Category Mapping
| Old Tariff Category | New Tariff Category |
|---|---|
| Tariff A – Domestic Tariff |
• Domestic General Tariff • Domestic ToU Tariff |
|
Tariff B – Low Voltage Commercial Tariff Tariff D – Low Voltage Industrial Tariff Tariff F – Low Voltage Mining Tariff |
• Non-Domestic Low Voltage General Tariff • Non-Domestic Low Voltage ToU Tariff |
|
Tariff C1 – Medium Voltage General Commercial Tariff Tariff E1 – Medium Voltage General Industrial Tariff Tariff F1 – Medium Voltage General Mining Tariff |
Non-Domestic Medium Voltage General Tariff |
|
Tariff C2 – Medium Voltage Peak/Off-Peak Commercial
Tariff Tariff E2 – Medium Voltage Peak/Off-Peak Industrial Tariff Tariff F2 – Medium Voltage Peak/Off-Peak Mining Tariff |
Non-Domestic Medium Voltage ToU Tariff |
| Tariff C3 – High Voltage General Commercial | Non-Domestic High Voltage General Tariff |
|
Tariff C4 – High Voltage Peak/Off-Peak Commercial Tariff E3 – High Voltage Peak/Off-Peak Industrial Tariff |
Non-Domestic High Voltage ToU Tariff |
| Tariff H – Low Voltage Specific Agriculture Tariff |
• Specific Agriculture Low Voltage General Tariff • Specific Agriculture Low Voltage ToU Tariff |
| Tariff H1 – Medium Voltage General Specific Agriculture Tariff | Specific Agriculture Medium Voltage General Tariff |
| Tariff H2 – Medium Voltage Peak/Off-Peak Specific Agriculture Tariff | Specific Agriculture Medium Voltage ToU Tariff |
| N/A |
• Water & Sewerage Operator Low Voltage General Tariff • Water & Sewerage Operator Low Voltage ToU Tariff • Water & Sewerage Operator Medium Voltage General Tariff • Water & Sewerage Operator Medium Voltage ToU Tariff |
|
Tariff G – Street Lighting Tariff Tariff G1 – Neon & Floodlight Tariff |
Street Lighting Tariff |
|
SPECIFIC (Co-Generation, Traction, Bulk, Thermal Energy Storage (TES), Backfeed & Ultra High Voltage) |
||
|---|---|---|
| Co-Generation | ||
| Old Tariff Category | New Tariff Category | |
|
Tariff C1 - Medium Voltage General Commercial Tariff Tariff E1 - Medium Voltage General Industrial Tariff Tariff F1 - Medium Voltage General Mining Tariff |
Non-Domestic Medium Voltage General Tariff | |
|
Tariff C2 - Medium Voltage Peak/Off-Peak Commercial
Tariff Tariff E2 - Medium Voltage Peak/Off-Peak Industrial Tariff Tariff F2 - Medium Voltage Peak/Off-Peak Mining Tariff |
Non-Domestic Medium Voltage ToU Tariff | |
| Tariff H1 - Medium Voltage General Specific Agriculture Tariff | Specific Agriculture Medium Voltage General Tariff | |
| Tariff H2 - Medium Voltage Peak/Off-Peak Specific Agriculture Tariff | Specific Agriculture Medium Voltage ToU Tariff | |
| Tariff E3 - High Voltage Peak/Off-Peak Industrial Tariff |
• Non-Domestic High Voltage General Tariff • Non-Domestic High Voltage ToU Tariff |
|
| Traction | ||
|
Medium Voltage Commercial Traction (C1 Traction) Tariff C3 Traction : High Voltage Commercial Traction |
Traction Medium Voltage General Tariff Traction High Voltage General Tariff |
|
| Bulk | ||
|
Tariff C2B - Medium Voltage Commercial Bulk Tariff C4B - High Voltage Commercial Bulk Tariff E3B - High Voltage Industrial Bulk |
Bulk Medium Voltage ToU Tariff Bulk High Voltage ToU Tariff |
|
| Thermal Energy Storage (TES) | ||
| Tariff C2TE - Medium Voltage Thermal Energy Storage | Thermal Energy Storage (TES) Medium Voltage Tariff | |
| Backfeed | ||
| Tariff Backfeed |
• Backfeed Medium Voltage General Tariff • Backfeed High Voltage General Tariff |
|
| Ultra High Voltage | ||
| N/A |
• Ultra High Voltage ToU Tariff • Bulk Ultra High Voltage ToU Tariff |
|
What is Fuel Adjustment?
The base tariff is the standard electricity rate approved by the Government. It includes a fixed fuel price used to calculate your bill, based on expected average fuel costs at the time. However, fuel prices can go up or down due to global market changes — and that’s where the Fuel Adjustment comes in.
Fuel Adjustment is a component that accounts for fluctuations in fuel prices used for electricity generation, based on the rates set in the base tariff.
Under RP3, this mechanism was known as the Imbalance Cost Pass-Through (ICPT), which was reviewed and applied every six months. If the average fuel cost over the six-month period was lower than the base tariff rate, an ICPT rebate was credited to the customer’s bill. If it was higher, an ICPT surcharge was applied.
In RP4, the ICPT mechanism has been replaced by the Fuel Adjustment. This new approach is more responsive to fuel price fluctuations, as it is updated monthly. The mechanism remains similar:
- If the actual fuel cost is lower than the base tariff, a rebate will be given.
- If the actual fuel cost is higher, a surcharge will apply.
To view the monthly Energy Adjustment rate, please visit the Single Buyer website.
ToU Tariff Expansion
Time-of-Use pricing for optimised electricity consumption
Time of Use (ToU) tariff scheme offers different tariff rates at
different times of the day. For example, tariff rates during
Off-Peak period will be lower than Peak period. In addition, for
Non-Domestic Medium Voltage and High Voltage customers, Maximum
Demand which occurs during Off-Peak period will not be charged.
ToU scheme has 2 time zones (Peak and Off-Peak):
-
On Monday to Friday
Peak : 2 PM to 10 PM
Off-Peak : 10 PM to 2 PM
-
On Saturday and Sunday
Off-Peak throughout the day (24 hours)
ToU is an opt-in service and only applies to customers already
installed with Smart Meter or Current Transformer (CT) Operated
Meter (RMR). To subscribe, please visit your nearest Kedai
Tenaga.
What are the benefits of switching to the Time of Use (TOU) tariff?
Lower Monthly Electricity Bills
You can enjoy lower electricity rates when you shift your usage to Off-Peak hours — before 2 PM or after 10 PM on weekdays, and all day on Saturday and Sunday.
Example: A household that typically runs the washing machine, water heater and air conditioner in the evening can shift some usage to morning or late night to reduce their electricity bill.
Maximise Business Benefits
Flexible ToU rates allow businesses to optimise operations by shifting energy usage to Off-Peak hours, which helps lower operating costs.
Example: A factory that operates heavy machinery or runs large-scale production lines during the day can shift part of its operation to off-peak hours (before 2 PM or after 10 PM) to take advantage of the lower rates.
*Note: Check your usage pattern and your ability to shift your consumption to the designated Off-Peak period before opting for ToU tariff scheme to enjoy full benefits of lower Off-Peak rates.
Incentives & Rebates
Over 23 million consumers will be protected, thanks to the incentives and rebates included in the Electricity Tariff Restructuring. Here's how the electricity bill is kept affordable.
- Domestic customers with consumption of 1,000kWh and below
- Non-Domestic Low Voltage Customers with consumption of 200kWh and below
If the eligible household does not have a TNB account under their name, they can still apply by declaring a third-party account. Simply fill in the application form and submit it at the nearest Kedai Tenaga.
For more information on your eligibility, visit click here .
-
Welfare organisations
Welfare institutions such as orphanage and elderly home, home for the blind and disabled, spastic centres 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.
-
Institutions of Learning
All government and private institutions of learning which are fully or partly funded by the Government.
-
Places of Worship
Places of worship registered under Registrar of Societies and/or their respective religious governing bodies 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.
Contact your nearest Kedai Tenaga