Since 1 July 2025, Tenaga Nasional Berhad (TNB, the electricity company for Peninsular Malaysia) has billed households under a new TNB RP4 tariff, which runs until 31 December 2027. The old block tariff, where the price per unit rose the more you used, has been replaced by separate charges for energy, capacity, network and retail, plus a monthly fuel adjustment called AFA. If one TNB bill covers several rooms, these changes affect how that bill adds up and how fairly you can share it. This guide explains each line in plain language, including two thresholds that matter for rentals: a temporary waiver for accounts at or below 800 kWh a month, which runs until 31 December 2026, and a higher energy rate above 1,500 kWh.
Before AFA and the Energy Efficiency Incentive (EEI) apply, the generation charge, the capacity charge, and the network charge total about 44.43 sen per kilowatt-hour (kWh) at or below 1,500 kWh a month, and about 54.43 sen/kWh above that level.
On a shared rental, Tenaga Nasional Berhad (TNB) calculates those charges on the whole property account. This article explains what changed on the bill, and how a room rate can follow the property account’s TNB rate.
Updated September 2026. Component rates and the temporary bill-protection window can change, so verify the live schedule on myTNB and the Energy Commission.
Table of Contents
What the TNB RP4 tariff restructuring changed
The Energy Commission (Suruhanjaya Tenaga) approved the schedule on 20 June 2025. It acted under the Incentive-Based Regulation (IBR) framework and section 26 of the Electricity Supply Act 1990. The announcement covered three changes: the average base tariff, a new tariff schedule, and the fuel-cost adjustment.
Incentive-Based Regulation is the Energy Commission’s framework for setting Peninsular electricity tariffs for a fixed period, with an incentive for TNB to improve efficiency. A Regulatory Period is a multi-year window under IBR. In each period, the commission sets TNB’s base tariff and tariff structure for Peninsular Malaysia, then reviews and resets those figures at the start of the next period. Fast-moving costs, mainly fuel, are handled separately through their own periodic adjustment rather than by reopening the base tariff. RP4 is the current period, running from 1 July 2025 to 31 December 2027. RP3 is the period it replaced.
The average base tariff for RP4 is 45.40 sen/kWh. That is slightly below the 45.62 sen/kWh figure approved in December 2024. The same announcement also said the average overall tariff cost is up to 19% lower than under Regulatory Period 3 (RP3). That 19% figure is a separate number from the base rate.
The 19% figure does not mean every household TNB bill is automatically reduced. Anthony Lim on paultan.org reported the previous base tariff at 39.95 sen/kWh. So the new base rate is actually higher, by about 13.64%. The commission’s “up to 19%” line compares total cost after the fuel adjustment was redesigned. It is not the sen/kWh rate on one month’s bill for a rented house.
The table below compares the RP3 block tariff with the RP4 charge structure.
| Feature | RP3 (before 1 July 2025) | RP4 (from 1 July 2025) |
|---|---|---|
| Structure | Five rising blocks on one energy rate, from about 21.80 sen/kWh on the first 200 kWh to about 57.10 sen/kWh above 900 kWh, as SoyaCincau described the pre-July structure | Separate generation charge, capacity charge, network charge, and retail charge, with a single step on the generation line |
| Generation/energy rate | 1–200 kWh: 21.80 sen/kWh; 201–300: 33.40; 301–600: 51.60; 601–900: 54.60; 901+: 57.10 sen/kWh (TNB schedule) | 1–1,500 kWh: 27.03 sen/kWh; 1,500 kWh and above: 37.03 sen/kWh |
| Capacity charge and network charge | Bundled into the block rate; not itemized | Capacity charge 4.55 sen/kWh; network charge 12.85 sen/kWh, on every unit at either level |
| Retail charge | Bundled into the block rate; not itemized | RM10 a month, waived at or below the protection line |
| Fuel adjustment | ICPT, revised about every six months | AFA, revised monthly |
| Average base tariff | 39.95 sen/kWh (paultan.org) | 45.40 sen/kWh |
| Period | Regulatory Period 3 | 1 July 2025 to 31 December 2027 |
Sabah Electricity Sdn Bhd (SESB) and Sarawak Energy Berhad (SEB) publish separate tariffs. A rental in Kota Kinabalu or Kuching does not use these Peninsular rates.
How the restructured domestic bill is added up
A domestic bill after 1 July 2025 follows the formula on the myTNB bill-component page: total kWh times one energy rate for the month, plus total kWh times AFA, plus total kWh times capacity charge, plus total kWh times network charge, plus the retail charge, minus EEI, plus other charges like the Renewable Energy levy.
| Charge | Published domestic rate |
|---|---|
| Generation (energy) | 27.03 sen/kWh at or below 1,500 kWh; 37.03 sen/kWh above 1,500 kWh |
| Capacity charge | 4.55 sen/kWh |
| Network charge | 12.85 sen/kWh |
| Retail | RM10 a month, waived at or below the protection line |
The formula applies one energy rate to the month’s kWh, so once usage exceeds 1,500 kWh the 37.03 sen/kWh rate replaces 27.03 sen/kWh on all units for that month, not only on the excess. The capacity charge at 4.55 sen/kWh and the network charge at 12.85 sen/kWh stay on every unit at either level, and those three per-unit charges are the base charges before AFA, EEI, the renewable-energy levy, and service tax are factored in.
AFA replaced six-monthly Imbalance Cost Pass-Through (ICPT) from 1 July 2025. Each month, the Energy Commission sets the sen/kWh from fuel prices and the exchange rate (myTNB). TNB told The Edge on 15 September 2026 that AFA “is not a new additional charge, and it does not channel profits to TNB.” The published rate for September 2026 is +3.67 sen/kWh.
EEI discounts a domestic account that uses 1,000 kWh or less electricity. The myTNB table assigns one rate to the month’s band, from a 25.0 sen/kWh discount at 1–200 kWh down to 0.5 sen/kWh at 901–1,000 kWh, with no discount above 1,000 kWh. The Energy Commission said users at or below 1,000 kWh were expected to be largely unaffected by the new schedule as announced, which is separate from how a later AFA month can still affect the final bill amount.
The Kumpulan Wang Tenaga Boleh Baharu (KWTBB) is the renewable-energy levy, charged at 1.6%, applied to accounts with more than 300 kWh usage a month. Service tax (SST) of 8% is applied on domestic consumption from 601 kWh upward. myTNB notes that the SST rate applies when the billing period is 28 days or longer, following the Service Tax (Rate of Tax) (Amendment) Order 2024.
kWh lines that move a shared rental account
TNB applies the retail charge, AFA, service tax, the EEI band, and the generation rate to the domestic account’s monthly kWh.
| Account total (kWh in the month) | What changes on a domestic bill |
|---|---|
| 300 | KWTBB levy applies to accounts above this level |
| 600 | Retail charge and AFA waived at or below this level, with service tax from 601 kWh |
| 800 | AFA, the retail charge, and service tax waived at or below this level from 1 September to 31 December 2026 |
| 1,000 | EEI discount applies at or below this level |
| 1,500 | Generation charge steps from 27.03 to 37.03 sen/kWh on that month’s units |
Several rooms running air-conditioners in one property can push that property’s total electricity consumption across a threshold in the above table. How that air-conditioning load adds up is covered in the aircond electricity cost guide.
From 1 September to 31 December 2026, myTNB waives AFA, the retail charge, and service tax on domestic accounts at or below 800 kWh, as Bernama reported on 17 September 2026. The generation step at 1,500 kWh, and the KWTBB levy on accounts with more than 300 kWh usage a month, stay in place through that window. Paul Tan reports the waiver line returns to 600 kWh on 1 January 2027, so an account between 600 and 800 kWh sits inside the window only until that date.
Reading a room rate off the restructured bill
To find the blended rate on a restructured bill, divide the amount payable by the kWh used on that same bill. That one number already bakes in the month’s generation charge, capacity charge, network charge, retail charge, AFA, EEI, KWTBB, and service tax. It’s a reading of one invoice, not a fixed rate, so it moves whenever the next bill’s AFA changes or usage crosses into a different band.
Shared houses split that TNB bill in a few common ways:
- Equal split — the bill is divided into equal shares, so every room pays the same regardless of how much it used.
- Utilities included in rent — the TNB bill sits inside the rent, with no separate charge for extra use.
- Prepaid room meters — each room pays for its measured kWh against credit bought in advance, which works as long as that sen/kWh is tied to a clear billing model.
PowerLah applies the current TNB tariff stack in real time as a room uses power, so the room figure can follow the live bill when AFA or the protection window changes. The wider pass-through comparison sits in the TNB electricity tariff guide, and the meter path is in how smart power metering works.
Domestic Time-of-Use on a rental account
Domestic Time-of-Use (ToU) is an optional TNB tariff that charges a different energy rate depending on the time of day, instead of one flat rate around the clock. Most room-rental houses stay on the domestic general tariff by default. myTNB’s category map shows the old Tariff A becoming either that general tariff or the optional ToU tariff.
On weekdays, ToU splits the day into peak hours (2pm to 10pm) and off-peak hours (10pm to 2pm); weekends are off-peak all day. The July 2025 schedule sets these ToU energy rates:
- Below 1,500 kWh a month — 28.52 sen/kWh at peak, 24.43 sen/kWh off-peak, against a flat 27.03 sen/kWh on the general tariff.
- Above 1,500 kWh a month — 38.52 sen/kWh at peak, 34.43 sen/kWh off-peak, against a flat 37.03 sen/kWh on the general tariff.
The capacity charge and the network charge still apply on top of any of these rates, so 24.43 sen/kWh on its own is not the all-in price.
ToU pays off when a meaningful share of usage sits in the off-peak hours. It helps less in student rentals and work-from-home houses, where air-conditioners tend to run through weekday afternoons — squarely inside the peak window.
Frequently asked questions
The 800 kWh exemption from AFA, the RM10 retail charge, and service tax runs from 1 September 2026 to 31 December 2026, covering any domestic account at or below that level. Reporting on the announcement says the standing 600 kWh line returns on 1 January 2027. The 1,500 kWh energy step and the KWTBB levy above 300 kWh sit outside this exemption and keep applying regardless.
No — myTNB’s formula multiplies AFA by the account’s total kWh, not just the units above the waiver line. The waiver removes that AFA line entirely when monthly use is at or below the threshold: 600 kWh under the standing schedule, or 800 kWh during the temporary window. Once usage crosses that line, the month’s AFA rate applies to every unit on the bill, not only to the excess.
Divide the amount payable by the kWh on that same bill. The result is the blended sen/kWh for the period — a single figure that already includes the energy step, AFA, EEI, KWTBB, and service tax the account incurred that month.
No. The Energy Commission’s RP4 schedule covers Peninsular Malaysia only — Sabah and Sarawak run separate utilities with separate tariffs, so none of these sen/kWh figures carry over.
What stays readable after the restructuring
On any shared rental, the account’s total kWh for the month still decides which restructured lines apply and which waiver kicks in after the TNB RP4 tariff restructuring. For the wider rate and pass-through comparison, see the TNB electricity tariff guide.
Glossary
AFA (Automatic Fuel Adjustment): Monthly sen/kWh rebate or surcharge that replaced ICPT on Peninsular bills from 1 July 2025.
EEI (Energy Efficiency Incentive): Banded sen/kWh discount for a domestic account at or below 1,000 kWh in the month.
IBR (Incentive-Based Regulation): The Energy Commission’s framework for setting Peninsular electricity tariffs for a fixed period, with an incentive for TNB to improve efficiency. RP4 is the current period under it.
ICPT (Imbalance Cost Pass-Through): The pre-July 2025 fuel adjustment, revised about every six months.
kWh (kilowatt-hour): The unit of electricity consumption on a TNB bill and on a room sub-meter.
KWTBB (Kumpulan Wang Tenaga Boleh Baharu): The renewable-energy fund levy, 1.6% on applicable charges, with a domestic exemption at or below 300 kWh a month.
RM: Malaysian ringgit.
RP3 (Regulatory Period 3): The incentive-based regulatory period before RP4. The Energy Commission’s “up to 19%” comparison is against this period.
RP4 (Regulatory Period 4): The Peninsular tariff period from 1 July 2025 to 31 December 2027.
SEB (Sarawak Energy Berhad): The utility for Sarawak. Its tariffs are not the TNB RP4 schedule.
SESB (Sabah Electricity Sdn Bhd): The utility for Sabah. Its tariffs are not the TNB RP4 schedule.
SST (Service Tax): The 8% domestic electricity tax. On the standing myTNB note it applies above the protection threshold, to consumption from 601 kWh upward when the billing period is at least 28 days.
ST (Suruhanjaya Tenaga): The Energy Commission, the Peninsular electricity regulator.
TNB (Tenaga Nasional Berhad): The electricity utility for Peninsular Malaysia.
ToU (Time-of-Use): Optional domestic tariff with a higher energy rate on weekday afternoons and a lower energy rate at other times.
Sources
- Suruhanjaya Tenaga, Jadual Elektrik Baharu: Lebih 23.6 Juta Pengguna Domestik Semenanjung Nikmati Kadar Lebih Adil — 20 June 2025. Accessed 22 September 2026.
- myTNB, Understand Your Electricity Tariff. Accessed 22 September 2026.
- myTNB, Bill component. Accessed 22 September 2026.
- Paul Tan, TNB new electricity tariff calculation from July 2025 — 21 June 2025. Accessed 22 September 2026.
- Anthony Lim, paultan.org, Big changes to domestic TNB bill structure — 20 June 2025. Accessed 22 September 2026.
- Alexander Wong, SoyaCincau, TNB Electricity Bill changes starting July 2025 — 21 June 2025. Accessed 22 September 2026.
- The Edge, Consumers have received RM3.1b in energy rebates since July 2025, says TNB — 15 September 2026. Accessed 22 September 2026.
- Bernama, Electricity Bill Protection For Domestic Users Expanded To 800 kWh — 17 September 2026. Accessed 22 September 2026.
- Paul Tan, Electricity bill protection raised to 800 kWh for Sept-Dec 2026 — 17 September 2026. Accessed 22 September 2026.
- Paul Tan, TNB AFA rate September 2026 set at +3.67 sen/kWh — 2 September 2026. Accessed 22 September 2026.
- Tenaga Nasional Berhad, Tariff Rate Schedule (effective 1 January 2014). Accessed 22 September 2026.
- Suruhanjaya Tenaga, Framework of IBR. Accessed 22 September 2026.