# How Malaysia's Electricity Tariff Structure Works > Since 1 July 2025, domestic TNB bills in Peninsular Malaysia are broken into five components and no longer follow tiered kWh blocks. This guide explains the RP4 base tariff, the Automatic Fuel Adjustment (AFA) mechanism that replaces ICPT, and the Time-of-Use tariff option. - Category: energy - Language: en - Status: published - Updated: 2026-08-01 - Canonical: https://negaraku.md/en/energy/electricity-tariff-structure --- If you leaf through your latest TNB bill and are surprised to see five separate lines of charges replacing a single tidy total, you are not confused — Peninsular Malaysia's electricity tariff structure was completely overhauled on 1 July 2025. The overhaul is part of the fourth regulatory period (RP4) set by the Energy Commission. The RP4 period itself runs January 2025 to December 2027; however, the new tariff and structure only took effect on 1 July 2025, while the old rates were kept throughout January to June 2025. Here is how to read each line. ## What changed in July 2025? Two big changes. First, the old tiered kWh block system — which charged different rates according to tiered usage totals — was abolished. Now there is only a single threshold at 1,500 kWh per month. Second, the *Imbalance Cost Pass-Through* (ICPT) mechanism, reviewed every six months, was replaced with the Automatic Fuel Adjustment (AFA), calculated every month. The average base tariff rate under RP4 is 45.40 sen/kWh, up 13.64% from 39.95 sen/kWh under RP3. ## What are the five components in your bill? The domestic bill now separates the costs from generation through to delivery to your home: | Component | Rate (domestic, July 2025) | |---|---| | Energy Charge (≤ 1,500 kWh) | 27.03 sen/kWh | | Energy Charge (> 1,500 kWh) | 37.03 sen/kWh | | Capacity Charge | 4.55 sen/kWh | | Network Charge | 12.85 sen/kWh | | Retail Charge | RM10 per month | | AFA | Changes every month | Note: 45.40 sen/kWh is the *average* of all components. That is why the Energy Charge line alone shows 27.03 sen/kWh, not 45.40. ## How do the domestic blocks work now? The 1,500 kWh threshold determines your Energy Charge rate. Usage up to 1,500 kWh is charged at 27.03 sen/kWh; only the excess above 1,500 kWh is charged at 37.03 sen/kWh. Two important forms of assistance reduce the bill for a typical household: - **The RM10 Retail Charge is waived** for usage of 600 kWh or less per month. - **The Energy Efficiency Incentive (EEI)** gives a rebate of up to 25 sen/kWh for households using 1,000 kWh or less per month. ## What is AFA and how does it differ from ICPT? AFA adjusts your tariff every month according to global fuel prices and the exchange rate, replacing the six-monthly ICPT review. It can be either an additional charge or a rebate, with a fluctuation cap of ±3 sen/kWh per month. For example, the Energy Commission set the AFA for August 2025 at -1.45 sen/kWh — a rebate that lowers the bill. Because this value changes every month, check the current AFA value announced by the Energy Commission. ## Should you choose the Time-of-Use tariff? Domestic consumers can now opt for a *Time-of-Use* (ToU) tariff that charges different rates according to the time of day: | Time | Rate (≤ 1,500 kWh) | |---|---| | Peak (Monday–Friday, 2:00 pm–10:00 pm) | 28.52 sen/kWh | | Off-peak (Monday–Friday 10 pm–2 pm; all weekend) | 24.43 sen/kWh | ToU is worthwhile if you can shift heavy usage — washing machines, EV chargers, air conditioning — to off-peak hours. If your usage is concentrated during the working evening, the regular general tariff may be cheaper. ## What's next Check your latest bill and identify those five component lines. Compare your monthly usage against the 600 kWh and 1,000 kWh thresholds to see whether you qualify for the Retail Charge waiver or the EEI rebate. For a precise calculation based on your actual usage, use the official bill calculator on the myTNB portal, and keep an eye on the monthly AFA value announced by the Energy Commission. ## Sources - Jadual Elektrik Baharu: Lebih 23.6 Juta Pengguna Domestik Semenanjung Nikmati Kadar Lebih Adil — https://www.st.gov.my/jadual-elektrik-baharu-lebih-236-juta-pengguna-domestik-semenanjung-nikmati-kadar-lebih-adil (Suruhanjaya Tenaga (Energy Commission)) - Energy Commission declares August 2025 AFA rebate of 1.45 sen/kWh for domestic users — https://soyacincau.com/2025/07/30/tnb-electricity-bill-afa-rebate-st-august-2025/ (SoyaCincau) - TNB Electricity Bill changes starting July 2025. What's new? — https://soyacincau.com/2025/06/21/tnb-domestic-electricity-tariff-structure-july-2025-impact-changes/ (SoyaCincau) - Big changes to domestic TNB bill structure - base tariff up 13.64% from July 2025 — https://paultan.org/2025/06/20/big-changes-to-domestic-tnb-bill-structure-no-more-tiered-rates-base-tariff-up-by-13-64-from-july-2025/ (paultan.org) - Your New TNB Bill Explained: Understanding the Monthly Tariff Changes — https://ringgitplus.com/en/blog/personal-finance-news/your-new-tnb-bill-explained-understanding-the-monthly-tariff-changes.html (RinggitPlus) --- Source of truth: https://github.com/negaraku-md/NegaraKu.md License: CC BY-SA 4.0