TNB Announces Electricity Tariff Increase Starting In July 2025

Tenaga Nasional Berhad (TNB) has announced that starting from July, the electricity tariff for Peninsular Malaysia will be increased by 14.2% to 45.62 sen per kilowatt-hour (kWh). A new tariff schedule will also be implemented.

The tariff increase will happen under the Regulatory Period 4 (RP4), that is scheduled to start from January 2025.  This will last until December 2027. Previously, the tariff was set at 39.95 sen/kWh under the ongoing Regulatory Period 3 (RP3).

In their announcement to Bursa Malaysia, TNB stated that the government has approved the implementation of RP4 under the Incentive Based Regulation framework. However, TNB also stated that for the first six months of RP4 until June 30, 2025, the current rates of RP3 will still be in effect, which means that Malaysians will have a six month adjustment period to before the new tariff rates is implemented.

The announcement also stated that the difference in rate during the period will be covered by Kumpulan Wang Industri Elektrik (KWIE).

“The Government’s decision to implement RP4 is a testament of the Government’s commitment to the IBR framework, which has been the pillar of sustainability and stability of the electricity supply industry. It provides a transparent regulatory framework, advocates cost efficiencies and ensures financial and operational sustainability of the system and the industry,” said TNB in the same announcement.

In the same announcement, TNB also stated that electricity generation costs remain the largest component of the electricity tariff, with gas and coal continuing to be the primary fuel sources for electricity generation.