TNB Tariff Rates Raised 14.2% Starting July 2025

Tenaga Nasional Bhd (TNB) has set Peninsular Malaysia’s base electricity tariff at 45.62 sen per kilowatt-hour (kWh) for regulatory period 4 (RP4) 2025-2027. This is a 14.2% increase from the current rate of 39.95 sen/kWh in 2022-2024 (RP3). The new rates are set to take effect on July 1, 2025.

The Ministry of Energy Transition and Water Transformation (PETRA) announced current rates will hold for the first half of 2025, with any differences funded by the Kumpulan Wang Industri Elektrik (KWIE).

The RP4 tariff factors in coal and gas prices, capital expenditure (CAPEX), and operating expenditure (OPEX) for TNB’s transmission and distribution (T&D). CAPEX is set at RM42.82 billion and OPEX at RM20.78 billion, up from RM20.55 billion and RM17.69 billion in RP3. The RP4 regulatory rate of return remains at 7.3%.

TNB stated generation costs, primarily from gas and coal, dominate tariffs. The Imbalance Cost Pass-Through (ICPT) mechanism allows fuel and generation cost adjustments after six months, subject to government approval.

TNB reaffirmed its commitment to reliable electricity and enhanced customer service to support Malaysia’s energy transition through incentive-based regulation (IBR) placing focus on balancing efficiency and energy transition goals.

Carz.com.my reached out to a local CPO and was informed that, for now, there will be no changes. However, when the new tariff takes effect, they will need to review the tariff schedule to assess any potential impact on EV charging rates.

It was also noted that there is a high probability commercial and industrial tariffs will be increased to subsidize domestic tariffs, which could lead to higher public EV charging rates or risk slashing margins.

If TNB maintains the low voltage commercial tariff, no adjustments will be necessary for most charging stations.