How Much Does Your Air Conditioner Really Cost? A Comparison of TNB’s New and Old Tariff

With TNB introducing a new electricity billing structure in July 2025, Malaysian households are starting to ask:
“Is my air conditioner costing me more under the new system?”

Given Malaysia’s hot weather all year round, air conditioners are no longer a luxury — they’re a necessity. Let’s break down how much it really costs to run your AC under both the old Domestic Tariff and the new Time-of-Use (ToU) tariff.

  1. Old TNB Tariff – Domestic (DOM):

The previous structure uses a tiered block system — the more you use, the more you pay per unit.

Usage (kWh)Rate (RM/kWh)
First 200 kWhRM0.218
201–300 kWhRM0.334
301–600 kWhRM0.516
Above 600 kWhRM0.546

Example:

A 1.5HP inverter aircon uses approx 1.2kWh per hour.
If used 8 hours/day for 30 days → 288kWh/month.

Your monthly AC bill would be around RM120+, depending on your total usage bracket.

  1. New TNB Tariff – Time of Use (ToU):

ToU rates vary by time of day:

Time PeriodHoursRate (RM/kWh est.)
Peak12pm–10pmRM0.63+
Mid8am–12pmRM0.45+
Off-Peak10pm–8amRM0.35+

If you shift AC usage to off-peak hours (night), you pay less per kWh.

  1. Real Case Comparison

AC Usage: 1.2kWh/hour × 8h/day × 30 days = 288 kWh/month

Option A – Using Old DOM Tariff:
Estimated monthly AC cost = RM120 – RM130

Option B – Using ToU Tariff:
Let’s assume 5 hours during peak, 3 hours during off-peak:

  • Peak (180 kWh × RM0.63) = RM113.4
  • Off-Peak (108 kWh × RM0.35) = RM37.8
  • Total: RM151.2/month

If fully used during Off-Peak (after 10pm):
288 kWh × RM0.35 = RM100.8 only!

4. Summary Comparison

Tariff ModeMonthly Cost (Est.)FlexibilityBest For
DOM (Old)RM120+HighDaytime usage households
ToU (New)RM100 – RM151MediumNight users & working adults
  1. What is AFA?

AFA = Account Financing Amount.
If you’ve taken an installment plan (e.g., meter installation fee), it appears in your monthly bill. It’s not related to energy usage but still adds to your total payable.

  1. Tips to Save on Aircon Bills:
  • Use Inverter-type air conditioners
  • Set temperature at 25–27°C
  • Schedule usage during off-peak hours
  • Use fans to circulate cool air

Conclusion:

Understanding the new vs old TNB tariff can help you make smarter decisions — especially for cooling costs. If your AC is mainly used at night, the ToU tariff can save you real money. For heavy daytime use, the DOM tariff might still work better.

Pro tip: You can switch your TNB tariff once every 6 months, so try monitoring your usage and see which one suits you better!

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