Starting 1 July 2025, under the fourth regulatory period (RP4, January 2025–December 2027), domestic electricity bills in Peninsular Malaysia are broken into five items: Energy Charge, Capacity Charge, Network Charge, Retail Charge and the Automatic Fuel Adjustment (AFA). The average base tariff rate is 45.40 sen/kWh, and the old tiered block system is replaced by a single threshold at 1,500 kWh per month. AFA replaces the ICPT mechanism and is now calculated monthly based on fuel prices.
- The average base tariff rate under RP4 is 45.40 sen/kWh, effective for the new tariff from 1 July 2025; the RP4 regulatory period itself runs January 2025 to December 2027.
- Domestic bills now have five components: Energy, Capacity, Network, Retail and AFA charges.
- The domestic Energy Charge is 27.03 sen/kWh for usage up to 1,500 kWh and 37.03 sen/kWh for the excess above that.
- AFA replaces ICPT and is calculated monthly; for example, the August 2025 AFA was set by the Energy Commission at -1.45 sen/kWh (a rebate), with a fluctuation cap of ±3 sen/kWh.
Who this applies to: TNB domestic electricity consumers in Peninsular Malaysia who want to understand their monthly bill.
On this page
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.
Why does the Energy Charge show 27.03 sen/kWh when the base tariff is 45.40 sen/kWh?
45.40 sen/kWh is the average base tariff rate that covers all cost components. On the bill, that cost is broken down; the domestic Energy Charge alone is 27.03 sen/kWh, while the rest appears as the Capacity Charge (4.55 sen/kWh), Network Charge (12.85 sen/kWh) and Retail Charge.
Is the RM10 retail charge applied to all households?
No. The RM10 monthly Retail Charge is waived for households using 600 kWh or less per month.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Kadar komponen terperinci (Caj Kapasiti 4.55, Caj Rangkaian 12.85, Caj Tenaga 27.03/37.03 sen/kWj) kini bersandar pada liputan media sekunder — sahkan terhadap jadual tarif rasmi Suruhanjaya Tenaga atau kalkulator myTNB.
- Kadar Time-of-Use (puncak 28.52 / luar puncak 24.43 sen/kWj) serta tetingkap waktu puncak dan luar puncak — sahkan terhadap jadual ToU rasmi ST/TNB.
- AFA berubah setiap bulan; -1.45 sen/kWj hanya sah untuk Ogos 2025 — pengguna perlu menyemak nilai bulan semasa yang diumumkan Suruhanjaya Tenaga.
- Rebat Insentif Kecekapan Tenaga (EEI) sehingga 25 sen/kWj bagi penggunaan ≤1,000 kWj dan pengecualian Caj Runcit RM10 bagi ≤600 kWj — sahkan syarat dan kadar terhadap dokumen rasmi ST.
- Had turun naik AFA ±3 sen/kWj sebulan — sahkan terhadap dokumen kawal selia RP4 rasmi.
Sources
- Jadual Elektrik Baharu: Lebih 23.6 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 — SoyaCincau
- TNB Electricity Bill changes starting July 2025. What's new? — SoyaCincau
- Big changes to domestic TNB bill structure - base tariff up 13.64% from July 2025 — paultan.org
- Your New TNB Bill Explained: Understanding the Monthly Tariff Changes — RinggitPlus
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 1 Aug 2026 | Approved and published. | — |