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)
- 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
- 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
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
- 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)
- 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)
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
