Tenaga to implement revised electricity tariff starting July 1.

Tenaga to implement revised electricity tariff starting July 1.

Malaysia's Tenaga Nasional Berhad (TNB) has announced significant changes to its electricity tariff structure, effective July 1, 2025. The Energy Commission of Malaysia (ST) has introduced a new tariff structure under the Incentive-Based Regulation (IBR) framework, designed to provide a more equitable and progressive electricity tariff for over 23.6 million domestic users in Peninsular Malaysia.

The new tariff structure, covering the period from July 1, 2025, to December 31, 2027, includes a revised base tariff rate of 45.40 sen per kWh, down from the previously approved 45.62 sen per kWh. This revision is expected to reduce the overall average cost of electricity by up to 19% compared to the current Regulatory Period 3 (RP3).

Key changes in the new tariff structure include a breakdown of energy, capacity, network, and retail costs, categorized under Domestic and Non-Domestic users based on voltage levels. This detailed breakdown aims to provide clearer visibility into the components of electricity bills.

To encourage efficient electricity consumption, a new Energy Efficient Incentive has been introduced. Domestic users consuming 1,000 kWh or less per month will not be impacted by the new tariff structure, while non-domestic low voltage users of 200 kWh and below will also benefit from this incentive.

The Time-of-Use (TOU) scheme has been streamlined and expanded to include longer off-peak periods, such as entire weekends and a broader timeframe from 10 pm to 2 pm on weekdays. This expansion aims to encourage electricity usage during off-peak hours and offer greater bill savings.

The government has also agreed to several measures to ensure social and welfare aspects are adequately addressed. This includes specific tariffs for agriculture, water, sewerage services, and rail operators, as well as a 10% rebate for schools, places of worship, and welfare homes. Additionally, eligible hardcore poor households will receive a RM40 monthly electricity bill rebate under the e-Kasih system.

The current Imbalance Cost Pass-Through (ICPT) mechanism will be replaced by the Automatic Fuel Adjustment (AFA) mechanism, which will update fuel and generation costs monthly based on current prices and foreign exchange rates. The latest AFA information will be reported monthly on ST’s website.

The new tariff structure will be published on TNB’s tariff page on June 21, 2025, at 12:00 pm, and users can generate an estimated monthly bill cost using the updated tariff calculator, expected to go live by June 23, 2025.

The implementation of these changes reflects TNB’s commitment to fair, transparent, and sustainable tariffs, designed to meet the needs and balance the interests of all energy users.

References:
1. [https://soyacincau.com/2025/06/20/st-new-electricity-tariff-structure-malaysia-july-2025/](https://soyacincau.com/2025/06/20/st-new-electricity-tariff-structure-malaysia-july-2025/)
2. [https://www.thestar.com.my/business/business-news/2025/06/16/anwar-tnb-earmarks-rm43bil-to-upgrade-national-grid-with-ai-battery-storage-systems](https://www.thestar.com.my/business/business-news/2025/06/16/anwar-tnb-earmarks-rm43bil-to-upgrade-national-grid-with-ai-battery-storage-systems)