From 1 July 2025, electricity users in Peninsular Malaysia will see several significant changes in how their bills are calculated and adjusted. Under the newly announced Regulatory Period 4 (RP4), the Energy Commission (Suruhanjaya Tenaga, or ST) is introducing a more dynamic pricing model, a detailed bill structure, and targeted incentives aimed at promoting energy efficiency. The new system will remain in effect until December 2027, according to the commission.
The existing Imbalance Cost Pass-Through (ICPT) system, which adjusts electricity tariffs every six months based on fuel prices, will be replaced by the Automatic Fuel Adjustment (AFA) mechanism. Under AFA, adjustments will now occur every month depending on fluctuations in fuel prices and foreign exchange rates. These monthly changes will be posted on the Energy Commission’s website.
The average base tariff for RP4 has been set at 45.40 sen per kWh – up from the current 39.95 sen per kWh. This figure is slightly lower than the previously proposed 45.62 sen and breaks down into 32.42 sen for generation and 12.98 sen for capital expenditure by Tenaga Nasional Berhad (TNB). ST notes that, despite this increase in the base rate, overall electricity costs may drop by as much as 19% for most users due to the new incentives and structure.
No More Tiered Billing; New Breakdown By Usage Category
The traditional tiered usage billing system is being replaced by a categorised structure based on the user’s voltage level: Low, Medium, or High. Domestic users will generally fall under the Low Voltage category.
Meanwhile, electricity charges will now be itemised into four categories: energy, capacity, network, and retail costs. Each category will appear separately on the monthly bill, offering greater transparency and clearer tracking of electricity use and cost components.
Energy Efficiency Incentives And Targeted Rebates
Domestic consumers who use 1,000 kWh or less per month will not be negatively impacted by the new structure. Instead, they will receive a rebate under the Energy Efficiency Incentive (EEI). Similarly, non-domestic users consuming 200 kWh or less also qualify for this incentive.
In addition, users who consume more electricity during off-peak hours, which is now extended from 10pm to 2pm on weekdays and covering the entire weekend, will benefit from the expanded Time-of-Use (TOU) scheme. This aims to encourage more efficient energy use and reduce peak hour demand.
Continued Support for Specific Sectors and Low-Income Households
Special electricity tariffs will remain in place for agriculture, rail transport, water services, and sewage operators. Additionally, a 10% rebate will be granted to registered educational institutions, welfare homes, and places of worship.
For low-income households categorised as hardcore poor and registered under the eKasih system, a RM40 monthly electricity rebate will still be offered. Consumers can check their eligibility for this rebate via this link.
More Details To Come
TNB will publish the detailed tariff structure on 21 June 2025 via a dedicated webpage. By 23 June, users will be given access to an updated tariff calculator on the same page to estimate how much they’ll pay based on their usage.
Whether your bill goes up or down will depend on your consumption level, time of use, and whether you qualify for any incentives. The majority of users, particularly those with efficient consumption patterns, are expected to benefit or see minimal change.
