Residential · Electricity bills
How Your TNB Electricity Bill Is Calculated (and Why It Went Up)
Malaysia's electricity tariff changed on 1 July 2025 under the RP4 regulatory period (1 July 2025 to 31 December 2027). The new bill has more lines than before, which is why many households were surprised. This guide explains each line in plain language and shows the electrical problems that quietly raise your bill.
The domestic tariff, line by line
| Bill component | Rate | What it pays for |
|---|---|---|
| Energy charge | 27.03 sen/kWh for usage up to 1,500 kWh; 37.03 sen/kWh for all kWh if usage is above 1,500 kWh | Generating the electricity |
| Capacity charge | 4.55 sen/kWh | Keeping enough power stations available |
| Network charge | 12.85 sen/kWh | The grid: transmission and distribution |
| Retail charge | RM10 per month | Billing, metering and customer service |
| Energy Efficiency Incentive | Rebate of up to 25 sen/kWh, for usage up to 1,000 kWh | Rewards lower-usage households |
| Automatic Fuel Adjustment (AFA) | Changes monthly (surcharge or rebate) | Changes in fuel costs |
| SST | 8% on the portion of usage above 600 kWh | Sales and service tax |
| KWTBB | 1.6% | Renewable Energy Fund |
So for most homes, the base rate before rebates and the AFA is 27.03 + 4.55 + 12.85 = 44.43 sen per kWh.
A Time-of-Use (ToU) option is also available for homes: an energy charge of 28.52 sen/kWh at peak times and 24.43 sen/kWh off-peak (for usage up to 1,500 kWh). It suits homes that can shift heavy use, such as EV charging and laundry, to off-peak hours.
Sources: paultan.org, TNB new tariff calculation from July 2025; Trexon, TNB tariff 2026. Always confirm current rates on myTNB.
A worked example: 500 kWh in a month
| Line | Calculation | Amount |
|---|---|---|
| Energy, capacity and network | 500 kWh × 44.43 sen | RM222.15 |
| Retail charge | Exempt at this usage until 31 Dec 2026 (normally RM10) | RM0.00 |
| AFA | Exempt at this usage until 31 Dec 2026 | RM0.00 |
| SST | Usage below 600 kWh | RM0.00 |
| Energy Efficiency Incentive | Rebate depends on usage band | − rebate |
| KWTBB 1.6% | Applied to the bill | + about RM3.50 |
This is a simplified example to show how the pieces fit. Your bill shows the exact rebate band and charges.
Why did my bill go up?
1. You crossed a threshold
Usage above 600 kWh attracts SST on the excess, and above 1,500 kWh the energy charge jumps to 37.03 sen for every kWh. During hot months, an extra aircond running a few more hours a night can push a household over a threshold.
2. The AFA changed
The AFA is reviewed monthly based on fuel prices. When it moves from a rebate to a surcharge, every kWh costs more even if your usage is the same.
3. An electrical fault is wasting energy
These are the problems we find most often when a bill rises without any change in habits:
- A water heater with a faulty thermostat heating continuously.
- A water heater element leaking to earth. This often also trips the RCCB; see why your RCCB keeps tripping.
- An old refrigerator with a worn door seal or failing compressor running non-stop.
- Aircond units with dirty filters or low refrigerant running longer to reach the set temperature.
- Outdoor or water pump circuits left on, or a pump running continuously because of a leak.
If your bill rises suddenly, compare this month's kWh with the same month last year on your bill. If the kWh rose sharply, look for one of the faults above.
For shops, offices and factories
Non-domestic low-voltage customers pay a higher combined rate: 27.03 + 8.83 + 14.82 = 50.68 sen/kWh for the energy, capacity and network charges (FactoryHub). For businesses with pumps, fans and compressors, the biggest saving usually comes from controlling motor speed with a variable speed drive (VSD) instead of running motors at full speed. We installed 40 ABB drives at Paradigm Mall Petaling Jaya for this reason. Price a VSD panel in our configurator.
How to reduce your bill
- Set aircond to 24–25°C and clean filters monthly.
- Put the water heater on a timer, or switch it off after use.
- Replace old appliances with 4- or 5-star energy-rated ones.
- Switch to ToU if you can move EV charging and laundry to off-peak hours.
- Fix leaks and faults. A registered electrician can find a faulty heater element or a circuit leaking to earth.
Frequently asked questions
Does three-phase supply make my bill higher? No. You pay for kWh used, not for the number of phases.
What is AFA on my bill? The Automatic Fuel Adjustment, a monthly surcharge or rebate that passes changes in fuel costs to consumers.
Why is there SST on my electricity bill? SST of 8% applies only to the portion of domestic usage above 600 kWh (temporarily 800 kWh until 31 December 2026 for eligible users).
Is ToU cheaper? Only if you use a large share of your electricity off-peak. Households that use most power in the evening may pay more.
Sources
- paultan.org, TNB new electricity tariff calculation from July 2025. paultan.org
- paultan.org, TNB bill AFA rate November 2026 set at 3.60 sen/kWh, 2 November 2026. paultan.org
- Trexon, TNB tariff 2026 guide. trexon.my
- FactoryHub, TNB tariff 2026 for factories. factoryhub.my
- myTNB. mytnb.com.my
This guide is general information, not a substitute for an inspection by a registered electrical contractor. Regulations and TNB charges change; always check the linked official sources.