TNB new electricity tariff calculation from July 2025

TNB has announced the new electricity tariffs from July 2025. There has been a major change in how the bill is calculated for domestic users which we will be covering in this story.

There are five components or “charges” to calculating your bill:

• Generation charge – 27.03 sen/kWh for usage under 1,500 kWh a month or 37.03 sen/kWh for usage over 1,500 kWh a month. This covers the actual cost of generating electricity from power plants.
• Capacity charge – 4.55/kWh. This charge is said to be for ensuring reliable supply by maintaining power plants and standby capacity.
• Network charge – 12.85/kWh. This charge is for the cost of operating and maintaining the grid and the local network to deliver electricity.
• Retail charge – RM10 a month, exempted for usage under 600 kWh a month. This is a fixed cost for metering, billing and customer service.
• Automatic Fuel Adjustment (AFA) – an automatic calculation of either a surcharge or discount of up to 3 sen/kWh depending on fuel prices, revised on a monthly basis.

Essentially, if you use more than 1,500 kWh a month, add generation + capacity + network charges together and you’re looking at a per kWh rate of 54.43/kWh + RM10 + what the AFA surcharge or discount is.

If you use below 1,500 kWh a month, you pay 44.43/kWh + RM10 + AFA.

Example of bill calculation

You might also notice in the example bill above that there is a discount called a “Energy Efficiency Incentive”. This applies for domestic users using less than 1,000 kWh a month. The discount is a downward sliding amount (the more the usage, the lesser the incentive).

Optional peak/off-peak ToU tariff for domestic

There is also a new optional ToU tariff for domestic users. This is only available for smart meter users. Essentially you are given the opportunity to pay a little more for electricity during peak hours in exchange for lower electricity prices during off-peak hours.

The definition of off-peak is quite generous – it covers 24 hours during the weekends, and 12am to 2pm as well as 10pm to 12am during weekdays.

For usage below 1,500 kWh per month

• Peak tariff – 28.52 per kWh
• Off-peak tariff – 24.43 per kWh

For usage above 1,500 kWh per month

• Peak tariff – 38.52 per kWh
• Off-peak tariff – 34.43 per kWh

So if you want to save on electricity in charging your electric car at home, you could schedule your charging to begin after 10pm or during the weekends for example.

What do you think of the new electricity tariffs? Do you think you will save on your bill or pay more after this? Let us know in the comments.

Here’s the rest of the tariffs for other types of electricity consumers: