TNB’s New Electricity Tariff (Effective 1 July 2025): What It Means for Your Bill?

As of 1 July 2025, Tenaga Nasional Berhad (TNB) has implemented the new electricity tariff structure, but what does this really mean for your monthly electricity bill? Here are the 4 key changes:

1. No more fixed blocks (like 200-300kWh)

Previously, you were charged based on how much electricity you used within certain blocks. Now, your TNB bill is broken down into different components like:

• Energy charge – the electricity you use
• Network charge – the cost to deliver electricity to your home
• Capacity charge – cost of maintaining sufficient electricity supply capacity
• Retail charge – RM10 per month if consumption is more than 600kWh

The types of charges are as per below:

• Energy charge  – RM0.2703 (<1,500 kWh per month) / RM0.3703 (>1,500 kWh per month)
• Capacity charge – RM0.0455
• Network charge – RM0.1285

And great news — TNB has removed the ICPT surcharge for users who consume over 1,500kWh a month.

2. Solar NEM offset remains

Just a quick recap, with a solar PV system under Net Energy Metering (NEM), you will first consume the solar generation during the day.  Any excess unused solar generation (Lebihan) will be exported back to the grid.  This will then be offset against your total usage at the end of each month.

So even with the new tariff in place, any Lebihan will still be used to offset against the energy, capacity and network charges at the end of each month.

3. Introduction of Energy Efficiency Incentive (EEI)

The EEI is aimed to encourage efficient use of electricity by providing rebates for monthly usage of 1,000kWh and below.  For example, if you import 420kWh, you will receive a rebate of RM0.145 per kWh!

Source: mytnb.com.my

4. Other charges

A 1.6% of Renewable Energy Fund (RE Fund) applies to all customers with consumption more than 300kWh whereas 8% Service Tax applies to your bill for usage above 600kWh per month.

Understanding your bill can help you manage your energy usage better like upgrading your solar PV system or monitoring peak usage hours.

Here are 4 examples of before and after:

Let’s calculate your TNB bill – Step by Step:

Before we start, make sure your latest TNB bill is within reach for reference.