Electricity Tariff in Malaysia

  • TNB new electricity tariff calculation from July 2025

    TNB new electricity tariff calculation from July 2025

    TNB has announced the new electricity tariffs from July 2025. There has been a major change in how the bill is calculated for domestic users which we will be covering in this story.

    There are five components or “charges” to calculating your bill:

    • Generation charge – 27.03 sen/kWh for usage under 1,500 kWh a month or 37.03 sen/kWh for usage over 1,500 kWh a month. This covers the actual cost of generating electricity from power plants.
    • Capacity charge – 4.55 sen/kWh. This charge is said to be for ensuring reliable supply by maintaining power plants and standby capacity.
    • Network charge – 12.85 sen/kWh. This charge is for the cost of operating and maintaining the grid and the local network to deliver electricity.
    • Retail charge – RM10 a month, exempted for usage under 600 kWh a month. This is a fixed cost for metering, billing and customer service.
    • Automatic Fuel Adjustment (AFA) – an automatic calculation of either a surcharge or discount of up to 3 sen/kWh depending on fuel prices, revised on a monthly basis.

    If you want to have a rough estimate how much your bill will be with the new tariff, use our TNB Bill Calculator tool.

    Essentially, if you use more than 1,500 kWh a month, add generation + capacity + network charges together and you’re looking at a per kWh rate of 54.43 sen/kWh + RM10 + what the AFA surcharge or discount is.

    If you use below 1,500 kWh a month, you pay 44.43 sen/kWh + RM10 + AFA.

    There is a discount called “Insentif Cekap Tenaga” or “Energy Efficiency Incentive”. This applies for domestic users using less than 1,000 kWh a month. The discount is a downward sliding amount (the more the usage, the lesser the incentive). The maximum discount is 25 sen/kWh.

    The table below shows how to calculate this discount.

    TNB new electricity tariff calculation from July 2025

    Optional peak/off-peak ToU tariff for domestic

    TNB new electricity tariff calculation from July 2025

    There is also a new optional ToU tariff for domestic users. This is only available for smart meter users. Essentially you are given the opportunity to pay a little more for electricity during peak hours in exchange for lower electricity prices during off-peak hours.

    The definition of off-peak is quite generous – it covers 24 hours during the weekends, and 12am to 2pm as well as 10pm to 12am during weekdays.

    For usage below 1,500 kWh per month

    • Peak tariff – 28.52 sen per kWh
    • Off-peak tariff – 24.43 sen per kWh

    For usage above 1,500 kWh per month

    • Peak tariff – 38.52 sen per kWh
    • Off-peak tariff – 34.43 sen per kWh

    So if you want to save on electricity in charging your electric car at home, you could schedule your charging to begin after 10pm or during the weekends for example.

    To apply to switch to ToU tariff you will have to visit the nearest Kedai Tenaga.

    What do you think of the new electricity tariffs? Do you think you will save on your bill or pay more after this? Let us know in the comments.

    Will I pay more or less for my TNB bill?

    TNB has published an estimated comparison for usage up to 900 kWh a month, which reveals a lower bill for this segment of usage. Essentially, if your bill is below RM400 now, you will probably be paying less.

    If your consumption is higher than 900 kWh a month, you will have to calculate yourself to see if you will see a drop or increase in your bill. Use our TNB Bill Calculator tool.

    TNB new electricity tariff calculation from July 2025

     
     
  • Big changes to domestic TNB bill structure – no more tiered rates, ToU option for domestic, from July 1, 2025

    Big changes to domestic TNB bill structure – no more tiered rates, ToU option for domestic, from July 1, 2025

    The way residential users will be charged for electricity in Malaysia is set to undergo a major change, with the energy commission (Suruhanjaya Tenaga, or ST) having announced earlier today that a new electricity tariff structure and rate will come into effect from July 1, 2025 under the fourth regulatory period (RP4).

    As part of the revision, the base tariff in Peninsular Malaysia has also been increased from the current 39.95 sen/kWh to 45.4 sen/kWh, which is a fraction lower than the 45.62 sen/kWh that was approved in December 2024, representing a 13.64% increase instead of the +14.2% that would have resulted from the previously approved rate.

    The biggest change that domestic users will experience is that your TNB bill will no longer be based on a tiered kWh rate (based on defined bands of blocks), as you can see from the comparison above. The next big change is that the rate is going to be revised on a monthly basis based on the cost of fuel used for electricity generation, which we will explain below.

    Big changes to domestic TNB bill structure – no more tiered rates, ToU option for domestic, from July 1, 2025

    The new tariff rates and structure will be officially revealed tomorrow at 12 pm on the TNB website, with an electricity bill cost estimator set to go live on the same page on June 23.

    UPDATE: Find out the new TNB rates in our latest story.

    While your bills will now be presented differently, the big question of course is whether you will be paying more for your electricity consumption. On the face of it, the base increase means that you should, but there are indicators that say otherwise, and there’s a silver lining for the majority of users, again as explained further below.

    The change is part of the three-year RP4 that runs from January 2025 to December 2027, replacing the RP3 from 2022-2024. However, from January to end-June 2025, there was no change in the electricity tariff rate and tariff structure, which allowed the public half a year to adjust. The current tariff schedule has been in place since 2014.

    The ST announcement on the electricity tariff revision. Click to enlarge.

    The ST said that the tariff revision involves a restructuring of the average base tariff rate and tariff schedule as well as the implementation of an automatic fuel cost adjustment (AFA) mechanism, the latter replacing the the current Imbalance Cost Pass-Through (ICPT) system.

    Under the new AFA, adjustments will be made based on monthly fuel prices and exchange rates, allowing for either a rebate or surcharge to be made on top of the base tariff, depending on actual and benchmarked fuel prices.

    This means that the electricity tariff will be adjusted on a monthly basis instead of every six months, with the monthly adjustment to be carried out automatically by no more than three sen peh kWh (up, surcharge or down, rebate) than the prevailing energy cost. Should it be necessary to adjust beyond the three sen ceiling, government approval will be needed.

    Big changes to domestic TNB bill structure – no more tiered rates, ToU option for domestic, from July 1, 2025

    In terms of structural changes, the new tariff will see users now being divided into domestic and non-domestic categories, based on voltage level usage (low, medium or high), while the electric bill will adopt a more detailed itemised format, reflecting actual costs across four components (energy, capacity, network and retail charges) to improve pricing clarity to users.

    Despite all the changes, the commission said that under the new tariff structure, more than 23.6 million domestic electricity users in the peninsular are set to benefit from fairer and more progressive rates. It added that the RP4 base tariff will result in a total cost reduction of 19% compared to that under RP3, primarily from having ICPT being replaced with the AFA.

    Of note is the introduction of an energy efficiency incentive (EEI). Domestic users who consume 1,000 kWh or less each month will be eligible for the incentive, with a downward sliding amount (as in the more the usage, the lesser the incentive) and more importantly, will not be impacted by the new tariffs. The domestic bill comparison chart published by TNB comparing current and new tariffs (above) suggests that this will the case, with lower costs for those under the 1,000 kWh segment.

    Big changes to domestic TNB bill structure – no more tiered rates, ToU option for domestic, from July 1, 2025

    Non-domestic users using under 200 kWh a month will also benefit from the EEI. Additionally, the time of use (TOU) scheme has been revised to have extended off-peak hours from 10 pm to 2 pm on weekdays and all day on weekends in order to encourage consumption during low-demand periods.

    Previously, only commercial users had the option to be on TOU billing (where ETOU, or enhanced time of use, was one such system), but it now looks like domestic low-voltage users will be eligible for peak and off-peak rates, with the provision that they have a smart meter. It’s likely that more will be revealed tomorrow when TNB announces details of the new tariff structure and rates.

    To preserve social welfare aspects, the government will offer special tariffs for agriculture, water services and rail operators, and also provide a 10% rebate for registered schools, places of worship and welfare homes. It will also continue the monthly RM40 electricity bill rebate programme for hardcore poor households registered under e-Kasih.

     
     
  • Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

    Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

    Last month, it was reported that the base electricity tariff in Peninsular Malaysia will be raised from the current 39.95 sen/kWh to 45.62 sen/kWh in July 2025, along with a new tariff schedule in July 2025. Now, prime minister Datuk Seri Anwar Ibrahim has come out to say that it’s not true.

    However, the PM says that electricity tariffs is expected to be raised by the second half of the year, with the rate to be determined after a revision, which will be based on capacity and price for a set period. Basically, it will go up, but perhaps not exactly at 14%.

    “About the Imbalance Cost Pass-Through (ICPT), it won’t be 14%, no! The revision every six months is based on the current rate. So I don’t think that it will be something that overburdens the community,” Anwar said at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) CNY event in KL yesterday, reported by Astro Awani.

    “But it sure is not what is being said. That’s why I just checked with Zafrul (MITI minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz) to see if I got it wrong,” he added.

    Electricity base tariff going up by 14% not true, but expect a raise in H2 2025, rate to be determined – PM

    It was reported that the base electricity tariff will be raised from 39.95 sen/kWh to 45.62 sen/kWh (+14.2%) come July 2025, along with a new tariff schedule.

    The change is part of the three-year Regulatory Period 4 (RP4) that will be effective from January 2025 to December 2027, replacing RP3 2022-2024. However, from January to end-June 2025, there will be no change in the electricity tariff rate and tariff structure, giving the public half a year to adjust. The current tariff schedule has been in place since 2014.

    Tenaga Nasional Berhad (TNB) told Bursa Malaysia that the RP4 implementation shows the government’s commitment to the Incentive Based Regulation (IBR) framework. “Through RP4 implementation under IBR, TNB commits to ensure a reliable and continuous supply of electricity to our customers, enhance customer service level and facilitate the nation’s energy transition agenda,” it said.

    Generation costs remain the largest component of the electricity tariff, with gas and coal still the primary fuel sources during this period. Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the ICPT mechanism.

    So, it’s not a matter of will it go up, but by how much. This will be of interest to EV owners who have ‘transferred’ their fuel costs to their TNB bill. The current highest tariff is 57.1 sen per kWh. We’ll see.

     
     
  • Electricity base tariff to go up by 14% from July 2025

    Electricity base tariff to go up by 14% from July 2025

    The base electricity tariff in Peninsular Malaysia will be raised from the current 39.95 sen/kWh to 45.62 sen/kWh (+14.2%) come July 2025, along with a new tariff schedule, The Star reports.

    This change is part of the three-year Regulatory Period 4 (RP4) that will be effective from January 2025 to December 2027, replacing RP3 2022-2024. However, from January to end-June 2025, there will be no change in the electricity tariff rate and tariff structure, giving the public half a year to adjust. The current tariff schedule has been in place since 2014.

    “Any differences from January to June 2025 (between the new and old base tariff rates) will be funded through Kumpulan Wang Industri Elektrik,” Tenaga Nasional Berhad (TNB) told the bourse, adding that the RP4 implementation shows the government’s commitment to the Incentive Based Regulation (IBR) framework.

    “Through RP4 implementation under IBR, TNB commits to ensure a reliable and continuous supply of electricity to our customers, enhance customer service level and facilitate the nation’s energy transition agenda,” it said.

    Electricity base tariff to go up by 14% from July 2025

    The allowed capital expenditure (capex) under RP4 is RM42.821 billion (RM26.554 billion base capex + RM16.267 billion contingent capex), while the allowed operating expenditure (opex) is RM20.782 billion.

    “The regulatory rate of return has been maintained at 7.3% as per RP3. This will enable TNB to make essential investments in the industry, ensuring a continuous and reliable electricity supply to meet the growing demand of customers,” the utility giant said.

    Generation costs remain the largest component of the electricity tariff, with gas and coal still the primary fuel sources during this period. Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the Imbalance Cost Pass-Through mechanism.

    “TNB remains neutral in this regard and there will be no impact to the company’s business operations or financial position,” it said.

     
     
  • SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

    SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

    The sales and service tax (SST) hike from six to eight per cent, slated for March 1, will also impact your electricity bill. According to The Star, the government has confirmed it will implement the new SST rate on energy usage exceeding 600 kWh, meaning that those who already pay more than RM232 per month can expect to fork out more money.

    The finance ministry said the higher rate is expected to affect 15% of electricity users. “For electricity, the SST is only applicable for usage above 600kWh. Almost 85% of users fall below this threshold and therefore will not be affected,” the ministry said in a statement yesterday.

    The 8% SST, expected to generate RM3 billion in additional revenue for the government, is said to be part of tax reforms aimed at strengthening the country’s fiscal foundation.

    SST for electricity above 600 kWh to increase from 8% on March 1 – EV charging to cost more in Malaysia?

    Earlier, it was reported that the government may exempt water and electricity from the tax hike, with domestic trade and cost of living minister Datuk Armizan Mohd Ali saying a special study on the impact of an 8% SST will be presented National Action Council on Cost of Living (Naccol) for consideration. It appears the government has since decided to implement the higher rate only for selected households, with those using less than 600 kWh per month continuing to enjoy zero sales tax.

    Users above that threshold were already hit by the elimination of the two-sen-per-kWh Imbalance Cost Pass-Through (ICPT) rebate at the start of the year, expected to have increased their monthly bills by between 4.2% and 6%, or between RM12 and RM32 extra.

    This will have a knock-on effect on the price of charging an electric vehicle at home, which can drastically increase your energy consumption above the 600 kWh threshold. For instance, if you use 1,200 kWh a month, your bill with the 8% SST will come up to RM593.71, which is RM6.70 more than what you’d currently pay, and RM30.70 more than what you’d have paid last year with the ICPT rebate. Not a big increase, but an increase nevertheless.

     
     
  • Electricity price hike in Malaysia from Jan 1, 2024 – charging EV at home to be up to 6% more expensive

    Electricity price hike in Malaysia from Jan 1, 2024 – charging EV at home to be up to 6% more expensive

    If your household electricity bill is currently costing you more than RM220 a month, be prepared to pay more for the utility from January 1, 2024.

    That’s because the Energy Transition and Public Utilities Ministry announced today that domestic consumers who consume between 601 kWh and 1,500 kWh a month of electricity will no longer be eligible for the two sen per kwh rebate under the government’s Imbalance Cost Pass-Through (ICPT) mechanism for the period of Jan 1 to June 30, 2024.

    As the New Straits Times reports, the move is set to have an impact on some 1.2 million households whose electricity consumption is above 600 kWh, with an increase of between 4.2% and 6% expected in their monthly bill. This means that these households can expect to pay between RM12 to RM32 more each month for their electricity.

    Electricity price hike in Malaysia from Jan 1, 2024 – charging EV at home to be up to 6% more expensive

    It was revealed that the move, which is part of the country’s plan for targeted subsidies, will save the government RM266.2 million in subsidies during the period. All other categories of users’ tariffs remain unchanged, leaving 85% of electricity consumers in Peninsular Malaysia unaffected by the revision.

    This means those using less than 600 kwh or RM231.80 (which works out to RM219.80 with the ICPT rebate, which is RM12) and below of electricity are still accorded a rebate of two sen per kWh, and the government will still subsidise RM1.9 billion to maintain the status quo for the 85%. This means that as of next year, there will be three tariff tiers for domestic users, namely:

    • Those using 600 kWh or less of electricity per month, who enjoy an ICPT rebate of two sen per kWh.
    • Those using 601 kWh to 1,500 kWh of electricity per month, who get no ICPT rebate but pay no surcharge.
    • Those using more than 1,500 kWh of electricity per month, who have to pay a surcharge of 10 sen per kWh.

    Electricity price hike in Malaysia from Jan 1, 2024 – charging EV at home to be up to 6% more expensive

    The ministry added that it will continue to progress its targeted subsidy agenda with the view that all domestic users should be imposed a surcharge in keeping with the ICPT, essentially a mechanism to review the electricity tariff every six months to take into account fluctuating fuel pricing, which contributes to 65% of the cost component of the electricity tariff.

    From an automotive perspective, the revision means that households using electric vehicles (EVs) will pay more to charge them at home, albeit in a different manner than those consuming more than 1,500 kWh. Unless you happen to use virtually nothing in terms of electricity but on charging the car, expect an increase.

    For example, if you use 1,200 kWh of electricity (or around RM550 a month), the ICPT rebate works out to RM24 off your present bill, which you’ll pay for from next year. Some will argue that the increase isn’t all that large, but it is there nonetheless, the additional spend.

     
     
  • No electricity price hike for households & SMEs, says Anwar – charging EVs at home won’t be more costly

    No electricity price hike for households & SMEs, says Anwar – charging EVs at home won’t be more costly

    Prime minister Datuk Seri Anwar Ibrahim has said there will be no electricity tariff hike for households as well as small and medium-sized enterprises (SMEs), according to reports by The Star and The Edge. Previously, there were suggestions that the government could raise the blanket electricity tariff due to rising fuel prices.

    “Based on the report by the National Action Council on Cost of Living on Tuesday (December 13, 2022), we decided that the earlier proposal to increase the electricity tariff will not proceed as this will burden the rakyat,” said Anwar, who is also the finance minister.

    “We acknowledge that if nothing is done, there will be an impact on the government’s finances which is quite high, exceeding some RM30 billion annually,” he added. While households and SMEs will not be subjected an electricity price hike, the same can’t be said of multinational and large export-oriented companies, which are set to see a slight increase.

    “The current tariffs are too low for them, and the subsidy should not be given to the large companies that make high profits,” Anwar said, adding that companies involved in agricultural and food production would also not be affected by an increase in electricity tariffs.

    No electricity price hike for households & SMEs, says Anwar – charging EVs at home won’t be more costly

    Malaysia’s electricity tariff rates saw a surcharge of 3.70 sen/kWh for non-domestic users, while domestic users continued to enjoy a 2 sen/kWh rebate until the end of 2022, with the government quoting a subsidy bill of RM5.8 billion. Energy and natural resources minister Nik Nazmi Nik Ahmad will announce the details of the revised tariff rates for affected sectors likely before the end of this month for the first half of 2023 (1H2023).

    As we previously reported, revisions to the electricity tariff will impact owners of EVs and PHEVs depending on where they do their charging. With Anwar saying households will not be subjected to a tariff hike, it looks like there will be no change when it comes to charging at home – you can forecast your electricity bill by using the Energy Commission’s online calculator.

    However, should the surcharge be raised for non-domestic customers, providers of public charging facilities may increase the rates charged to users, making it more expensive to charge away from home.

     
     
  • Electricity subsidies in Malaysia may end soon – will charging EVs at home be more expensive soon?

    Electricity subsidies in Malaysia may end soon – will charging EVs at home be more expensive soon?

    The government has agreed to continue offering a two sen per kWh electricity rebate to domestic users until the end of 2022, according to a report by The Star. Speaking in the Dewan Rakyat yesterday, energy and natural resources minister Datuk Seri Takiyuddin Hassan said the decision will see the government foot a subsidy bill of RM5.8 billion from July 1 to December 31 this year.

    He added that the surcharge for non-domestic users will remain at 3.70 sen/kWh, which is lower than the actual of rate of Imbalance Cost Pass-Through (ICPT) of 11.81 sen/kWh. ICPT is a mechanism under the Incentive Based Regulation (IBR) framework which allows for Tenaga Nasional (TNB) to reflect changes in fuel and other energy generation-related costs in the electricity tariff.

    These costs are set based on benchmarked prices in the base tariff, and the implementation of ICPT, which is reviewed every six months, would reflect the actual costs in tariff in from of rebate or surcharge. For example, if coal and/or gas prices go up, there’s a surcharge, and vice versa.

    Referring to TNB’s FAQ on ICPT, for the period of January 1 to June 30, 2022, there was an additional fuel and other generation costs amounting to RM7 billion. To cover the costs, the government allocated RM2.3 billion as well as another RM3.5 billion to ensure the ICPT surcharge is maintained for all non-domestic customers such as commercial and industrial – the total subsidy bill was RM5.8 billion.

    As it stands, from July 1 to December 31, 2022, domestic customers will still enjoy an ICPT rebate of 2 sen/kWh, while non-domestic users are faced with an ICPT surcharge of 3.70 sen/kWh. However, Takiyuddin said yesterday that electricity subsidies, including those for lower income groups (E-Kasih programme), can’t go on indefinitely and may be removed in the future.

    From a motoring perspective, owners of EVs and PHEVs who regularly charge their cars at home may have to pay more to “refuel” in the future should subsidies be removed. You can forecast your electricity bill using the Energy Commission’s handy online calculator and deduce how much might have to pay should the ICPT rebate be removed or switched to a surcharge.

    Similarly, an even higher ICPT surcharge for non-domestic customers could result in providers of public charging facilities increasing the rates charged to users. One potential workaround is to introduce affordable EV charging rates, as proposed by prime minister Datuk Seri Ismail Sabri Yaakob during the launch of the 2022 Perodua Alza yesterday.

     
     
  • Electricity price hike due to fuel price increase likely; consumers using 300 kWh/mth or less may be exempt

    Electricity price hike due to fuel price increase likely; consumers using 300 kWh/mth or less may be exempt

    Malaysian consumers are expected to have a surcharge imposed on their electricity bills next month due to the continuously rising fuel prices as a result of the conflict between Russia and Ukraine that started in February this year, according to a report by The Vibes.

    National utilities company Tenaga Nasional Berhad (TNB) is facing difficulty in keeping rates at the current level due to the sharp rise in coal prices, which have increased by four times since the start of the Russia-Ukraine conflict, according to the report; coal is the source for nearly half of Malaysia’s required electricity.

    Prices of the benchmark Newcastle coal hit its all-time high of US$440 (RM1,944) per tonne in March, which was up from US$67.50 (RM296.86) previously, and the price increase was driven by fear of a supply shortage as Western countries imposed sanctions on Russia’s financial system and energy products following Russia’s attack on Ukraine.

    Electricity price hike due to fuel price increase likely; consumers using 300 kWh/mth or less may be exempt

    Putrajaya is understood to be considering the matter on whether it will allow the cost of the increased price of coal to be passed on to consumers, The Vibes wrote, also noting that a cabinet paper on the surcharge issue has been made available at a ministerial meeting yesterday. As of February 2022, the tariff for consumers remained at 39.45 sen per kWh, with a rebate of two sen per kWh without surcharge.

    The Imbalance Cost Pass-Through (ICPT) formula is reviewed every six months, and determines if the cost of fuel is translated into the final electricity bill for consumers; the next ICPT review is due next month, The Vibes reported.

    In a more recent update, the publication added that around five million households in Malaysia are likely to be spared the expected upcoming surcharge, citing a source that said consumers who are billed less than RM77 per month for electricity, or with a monthly consumption rate of 300 kWh or less may not be subjected to the surcharge.

    Electricity price hike due to fuel price increase likely; consumers using 300 kWh/mth or less may be exempt

    The consumers who fall under this category of electricity usage is estimated to form around 70% of TNB’s domestic consumer base, and most of these are said to be from the lower-income groups, The Vibes reported. “The hike is expected to be implemented in July and it will affect 30% of household consumers and that is equivalent to 2.37 million consumers,” a source told the news outlet.

    In February this year, business groups urged the Malaysian government to intervene and bear the costs of rising fuel prices, following the implementation of the electricity tariff surcharge of 3.7 sen per kWh from February to June for non-domestic (commercial and industrial) users.

    A joint statement from 11 business associations and trade groups stated that the recent increase in surcharge would further driver inflation, and lead to the demise of many businesses, many of which would not be able to absorb the increase even if the economy is thriving.

     
     
  • Gov’t urged to bear the temporary rise in fuel prices – business groups say electricity tariff hike “damaging”

    Gov’t urged to bear the temporary rise in fuel prices – business groups say electricity tariff hike “damaging”

    Last month, the government announced that there would be no increase in electricity tariffs for domestic users in February despite previously indicating it would introduce them as part of revisions set under the Incentive-Based Regulation (IBR) framework, brought about by rising fuel costs.

    The decision means that the electricity tariff remains at 39.45 sen per kWh, while consumers will continue to enjoy a rebate of two sen per kWh without any surcharge. However, while the tariff has remained unchanged for non-domestic users (commercial and industrial), these sectors will have to pay an electricity tariff surcharge of 3.7 sen per kilowatt-hour from February to June.

    This has not gone down well with business owners and traders, with business groups urging the government to intervene and bear the temporary rise in fuel prices rather than impose an electricity tariff hike, the New Straits Times reports.

    Gov’t urged to bear the temporary rise in fuel prices – business groups say electricity tariff hike “damaging”

    In a joint statement, 11 business associations and trade groups stated that the recent increase in surcharge would only “set the train of inflation further” and ring a death knell for many businesses and enterprises, many of which would not be able to absorb the increase even if the economy was thriving.

    “The sudden and immediate implementation of the hike in electricity charges is shocking in so many ways. Firstly, it was announced without any discussions with stakeholders and consumers. Secondly, it was implemented immediately on February 1 and the hike that was effectively more than 15% (or up to 25% on off-peak tariff) is shockingly high. Thirdly, the government has warned businesses not to pass on the cost of the hike to consumers,” they said.

    “At this critical juncture where all businesses, big and small, are still struggling in the survival and revival mode, this hike could be the death knell of many enterprises,” they said, adding that the electricity tariff hike will increase the cost of essential goods and services, which would further restrict and reduce the purchasing ability of consumers.

    Gov’t urged to bear the temporary rise in fuel prices – business groups say electricity tariff hike “damaging”

    In the automotive domain, both production and retail segments are set to see an increase in electricity expenditure, and operators of electric vehicle charging networks at commercial locations would also be impacted by the move. The groups also raised concerns that the electricity tariff hike would lead to a new pricing regime for goods and services that will persist.

    The business groups said that while fuel costs have escalated due to mainly supply chain interruptions coupled with geopolitical trade play, they were confident that market forces will eventually end the energy woes once the supply chain is restored.

    “Once the supply chain is restored and normalcy returns, market forces will cause the predatory pricing to recede and competition will prevail. In this predictable short term disruption, it is more prudent for the government to intervene and support the temporary pain and not pass the burden on to the consumer,” they said.

     
     
  • Electricity tariff to go up in January 2014 – how will electric car owners be affected?

    tnb-tariff

    If you’ve been paying attention to Malaysian news, you would have read that consumers will have to brace for a hike in electricity rates in January 2014. Unless you live in a condo with a strata title, we should all be paying for electricity under Tariff A – Domestic Tariff. Tenaga Nasional have revised both the price bands as well as the price per kWh. The new rates are shown above.

    You might be thinking what has this to do with motorists. Well, since electric cars are now officially here in Malaysia, electricity prices are as much as a concern as fuel prices for owners of these cars. We decided to have a look at how much extra an owner of an electric car such as the Mitsubishi i-MiEV or the Nissan Leaf would be paying under the new rates.

    We’ll base our calculators on the experiences of our contributor Daniel Yap with the Nissan Leaf pilot programme, where he drove a Nissan Leaf as a daily driver over a period of six weeks. Over the six weeks he had with the car, he traveled a total of 1,785 km, or about 42.5 km per day. For all that, he consumed 361.4 kWh of electricity to recharge the car.

    Nissan LEAF - 10072012 - _78

    That translates to just under 5 km per kWh, or 4.94 km per kWh to be more precise. Based on the old tariff’s highest price bracket which is 45.4 sen per kWh, he basically spent RM164.08 over the period of six weeks charging the car. At that tariff, the price per km is about 9.2 sen per km.

    The new tariff is 57.10 sen per kWh. That translates to 11.42 sen per km. So the same 1,785 km would have cost him RM203.85 instead of RM164.08.

    So how much more would you have to pay for electricity per month for your Nissan Leaf based on the new tariff? This assumes the same driving pattern that Daniel used of course.

    Mileage Old Tariff (9.2 sen per km) New Tariff (11.42 sen per km)
    1,000 km per month RM92.00 RM114.20
    2,000 km per month RM184.00 RM228.40
    3,000 km per month RM276.00 RM342.60
    4,000 km per month RM368.00 RM456.80
    5,000 km per month RM460.00 RM571.00

    Daniel, who coincidentally owns a VW Golf TSI, says that based on a similiar driving style with how he drove the Leaf, the VW would consume 11.63 litres per 100 km. That would be 232.6 litres per month, or RM488.46. The gap between electric and Golf TSI is a difference of RM260 per month.

    So yes, are you considering an electric car, and has the recent electricity tariff announcement made you rethink your decision? Share your thoughts in the comments.

     
     
 
 
 

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Last Updated Jul 10, 2025

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