Suruhanjaya Tenaga introduces progressive tariff framework for domestic and business users, as SMEs gather to discuss impacts and opportunities under RP4
Bangsar, 18 August 2025 – Yesterday, a special sharing session on the new tariff structures was held at Tower A of TNB Platinum. The event brought together SME owners and members of the media to better understand how these changes may affect business operations and costs. Attendees also raised questions on the broader economic impact and opportunities for adopting energy-efficient practices to reduce expenses.
More than 23.6 million domestic electricity users in Peninsular Malaysia will enjoy fairer and more progressive rates under the new electricity tariff structure, approved by the Government and set to take effect from 1 July 2025 to 31 December 2027.
The revised tariff, introduced under the Fourth Regulatory Period (RP4), is part of the Incentive-Based Regulation (IBR) framework and involves three key changes:
- Adjustment of the average base tariff,
- Introduction of a new tariff schedule, and
- Replacement of the current fuel cost pass-through mechanism with the new Automatic Fuel Adjustment (AFA) system, which updates costs monthly based on market fuel prices and currency exchange rates.
Fairer and greener energy use
The base tariff has been adjusted to 45.40 sen/kWh — a slight reduction from 45.62 sen/kWh in December 2024 — reflecting lower average supply costs. Energy Efficiency Incentives will ensure that domestic users consuming 1,000 kWh or below, and small non-domestic users consuming 200 kWh or below, will not be affected by the new structure.
A revised Time of Use (TOU) scheme will also give businesses and households greater opportunities to save, with longer off-peak hours now extended to weekends and late evenings, encouraging efficient energy use aligned with Malaysia’s transition towards a more sustainable power system.
Social and welfare considerations remain central. A 10% rebate will continue for registered institutions such as universities, schools, welfare homes, and places of worship. Meanwhile, the RM40 Electricity Bill Rebate Programme will remain available for hard-core poor households registered under the e-Kasih system.
Implementation and support
The new tariff schedule will be reflected in electricity bills beginning July 2025. Consumers can review the new rates at www.mytnb.com.my/tariff or use TNB’s online tariff calculator from 23 June to estimate future monthly bills.
For enquiries, users may contact TNB CareLine at 1-300-88-5454, email [email protected], or visit official TNB platforms.
