KUALA LUMPUR, 24 June 2025
Tenaga Nasional Berhad (TNB) is set to launch a revamped electricity tariff structure in Peninsular Malaysia beginning 1 July 2025, under its Regulatory Period 4 (RP4), lasting through 31 December 2027
Key Highlights
- Base tariff: Adjusted to 45.40 sen/kWh, down marginally from the previously approved 45.62 sen/kWh in December 2024
- Structural overhaul: The five-tier volume pricing is eliminated. Billing is now broken down into four transparent components—energy, capacity, network, and retail—with added monthly Automatic Fuel Adjustment (AFA) to reflect real-time fuel costs
- Voltage-based categories: User classification shifts from business-based segmentation to domestic and non-domestic categories, determined by voltage usage levels
- Time-of-Use (ToU) expanded: ToU is now available to domestic and non-domestic low-voltage customers. Off-peak hours include all weekends, complemented by evening/night discounts on weekdays
- Domestic relief measures:
- Households consuming up to 1,000 kWh monthly qualify for Energy Efficiency Incentives, offsetting the revised tariff
- Zero retail charge (RM10/month) for usage up to 600 kWh
Who Gains, Who Pays?
- 23.6 million domestic consumers in Peninsular Malaysia are expected to see little to no impact, particularly those with monthly usage under 900 kWh, who may even enjoy slight savings
- The new tariff schedule is projected to reduce average costs by up to 19% compared to RP3’s structure
TNB’s Neutral Stance
Analysts believe the new tariff framework is earnings-neutral for TNB, as the Incentive-Based Regulation (IBR) and monthly AFA mechanism eliminate revenue timing risks and cash flow mismatches
Transition Timeline
- June 2025: Tariff remains under RP3 rates. Any disparity between RP3 and RP4 rates from January–June will be absorbed by the Kumpulan Wang Industri Elektrik (KWIE) fund
- 1 July 2025: Implementation of the new RP4 tariff and structural changes.
- August 2025 bills onward: Fully reflect the new structure, complete with itemised components and AFA adjustments .
🔍 Bottom Line
The RP4 tariff overhaul aims to deliver simpler, fairer, and more transparent electricity billing, with significant safeguards for regular households—especially those mindful of consumption. With the expansion of Time-of-Use rates and monthly fuel price adjustments, the system is better designed to encourage energy efficiency and reflect real-time costs.
Would you like a breakdown comparison of your current bill versus the new structure—or tips on maximizing savings under the updated plan?
How to Track Electricity Usage at Home ?
Want to avoid bill shock? Monitor your daily consumption with a Digital Electric Meter Checker—just plug it into your socket and instantly know how much power your appliances are using.
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