The best way residential customers shall be charged for electrical energy in Malaysia is ready to endure a significant change, with the power fee (Vitality Feeor ST) having introduced earlier at this time that the bottom electrical energy tariff in Peninsular Malaysia shall be elevated from the present 39.95 sen/kWh to 45.4 cents/kWh beneath the fourth regulatory interval (RP4) from July 1, 2025.
The introduced base price is a fraction decrease than the 45.62 sen/kWh that was permitted in December 2024and when it comes to share, represents a 13.64% improve as an alternative of the +14.2% that may have resulted from the beforehand permitted price.
The largest change that home customers will expertise is that your TNB invoice with not be primarily based on a tiered kWh price (primarily based on outlined bands, or blocks), as you’ll be able to see from the comparability above. The following massive change is that the speed goes to be revised on a month-to-month foundation primarily based on the price of gas used for electrical energy technology, which we are going to clarify beneath.
The brand new tariff charges and construction shall be formally revealed tomorrow at 12 pm on the TNB web sitewith an electrical energy invoice value estimator set to go reside on the similar web page on June 23.
Whereas your payments will now be introduced in another way, the large query after all is whether or not you’ll be paying extra to your electrical energy consumption. By all accounts, the bottom improve implies that it is best to, however there are indicators that say in any other case, and there’s a silver lining for almost all of customers, once more as defined additional beneath.
The change is a part of the three-year RP4 that runs from January 2025 to December 2027, changing the RP3 from 2022-2024. Nevertheless, from January to end-June 2025, there was no change within the electrical energy tariff price and tariff construction, which allowed the general public half a 12 months to regulate. The present tariff schedule has been in place since 2014.
The ST mentioned that the tariff revision entails a restructuring of the typical base tariff price and tariff schedule in addition to the implementation of an automated gas value adjustment (AFA) mechanism, the latter changing the the present Imbalance Value Go-By way of (ICPT) system.
Below the brand new AFA, changes shall be made primarily based on month-to-month gas costs and trade charges, permitting for both a rebate or surcharge to be made on high of the bottom tariff, relying on precise and benchmarked gas costs.
Because of this the electrical energy tariff shall be adjusted on a month-to-month foundation as an alternative of each six months, with the month-to-month adjustment to be carried out routinely by not more than three sen (up, surcharge or down, rebate) than the prevailing power value. Ought to it’s needed to regulate past the three sen ceiling, authorities approval shall be wanted.
Regardless of all of the modifications, the fee mentioned that beneath the brand new tariff construction, greater than 23.6 million home electrical energy customers within the peninsular are set to learn from fairer and extra progressive charges. It added that the RP4 base tariff will end in a complete value discount of 19% in comparison with that beneath RP3, primarily from having ICPT being changed with the AFA.
By way of structural modifications, the brand new tariff will see customers now being divided into home and non-domestic classes, primarily based on voltage degree utilization (low, medium or excessive), whereas the electrical invoice will undertake a extra detailed itemised format, reflecting precise prices throughout 4 elements (power, capability, community and retail costs) to enhance pricing readability to customers.
Of be aware is the introduction of an power effectivity incentive (EEI). Home customers who eat 1,000 kWh or much less every month shall be eligible for the inducement, with a downward sliding quantity (as within the extra the utilization, the lesser the inducement). Most significantly, this group of customers is not going to be affected by the brand new tariff implementation, the ST mentioned.
Non-domestic customers utilizing beneath 200 kWh a month can even profit from the EEI. Moreover, the time of use (TOU) scheme has been revised to have prolonged off-peak hours from 10 pm to 2 pm on weekdays and all day on weekends so as to encourage consumption throughout low-demand durations.
Beforehand, solely industrial customers had the choice to be on TOU billing (the place ETOU, or enhanced time of use, was one such system), however it now appears to be like like home low-voltage customers shall be eligible for peak and off-peak charges, with the availability that they’ve a sensible meter. It’s probably that extra shall be revealed tomorrow when TNB declares particulars of the brand new tariff construction and charges.
To protect social welfare features, the federal government will supply particular tariffs for agriculture, water providers and rail operators, and likewise present a ten% rebate for registered colleges, locations of worship and welfare properties. It can additionally proceed the month-to-month RM40 electrical energy invoice rebate programme for hardcore poor households registered beneath e-Kasih.
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