Quote from admin on October 16, 2025, 1:44 pm

From July 1, 2025, Tenaga Nasional Berhad (TNB) implemented a new electricity tariff structure under Regulatory Period 4 (RP4) in Peninsular Malaysia. Here’s how this change affects home air conditioner (AC) users, especially when comparing Domestic AM vs Time of Use (ToU) options.

Key Changes in TNB Tariff Structure (2025 Jul Onwards)

1. Two-Tier Tariff System replaces the old 5-tier volume-based rates:

• Monthly usage ≤ 1,500 kWh: 27.03 sen/kWh
• Monthly usage > 1,500 kWh: 37.03 sen/kWh

2. Additional Charges are itemized in your bill:

• Capacity Charge: 4.55 sen/kWh
• Network Charge: 12.85 sen/kWh
• Retail Charge: RM10/month

  • Waived for usage ≤ 600 kWh/month

3. AFA (Automatic Fuel Adjustment):

• Monthly adjustment (positive or negative) based on fuel costs and currency rates.
• Example: –1.10 sen/kWh in Sept 2025, –6.50 sen/kWh in Oct 2025

1. Time of Use (ToU) for smart meter users:

• Usage ≤ 1,500 kWh/month:

  • Peak: 28.52 sen/kWh
  • Off-Peak: 24.43 sen/kWh

• Usage > 1,500 kWh/month:

  • - Peak: 38.52 sen/kWh
  • - Off-Peak: 34.43 sen/kWh

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Air Conditioner Cost Estimation Under New Tariff

Scenario Assumptions:

• AC unit: 1.5 HP (avg. 1.3 kW usage)
• Running time: 6 hrs/day × 30 days = 234 kWh/month
• Total household electricity use: 800 kWh/month

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1. Under Domestic AM Tariff

• Total unit rate = 27.03 + 4.55 + 12.85 = 44.43 sen/kWh
• Minus AFA (e.g., –1.10): 43.33 sen/kWh
• AC electricity cost: 234 × 0.4333 = RM101.4
• Add Retail Charge: RM10
  → Total: RM111.4/month
  (If usage ≤ 600 kWh, Retail Charge & AFA may be waived)

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2. Under Time of Use (ToU) Tariff

Assume:

• 3 hrs/day in peak = 117 kWh
• 3 hrs/day in off-peak = 117 kWh

Cost:

• Peak: 117 × 0.2852 = RM33.38
• Off-peak: 117 × 0.2443 = RM28.58
• Subtotal: RM61.96
• Add Retail: RM10
• Subtract AFA (–1.10): RM2.57
  → Total: RM69.39/month

Savings vs Domestic AM: ~RM40/month
(35–40% cheaper if you shift usage to off-peak)

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Domestic AM vs ToU: Which Is Better?

Feature	Domestic AM	Time of Use (ToU)
Rate Stability	Fixed all day	Lower during off-peak
Flexibility	No need to adjust the time, just control the total amount	Inflexible schedules
Potential Savings	Moderate	High (with smart timing)
AFA/Retail Fee	Waivable under 600 kWh	Same condition applies

If you need to calculate your electricity fees, please visit the electricity calculator as link below:

TNB Electricity Calculator

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