Since 1 July 2025, TNB bills Peninsular Malaysia households a flat rate instead of the old tiered blocks: 27.03 sen/kWh energy charge (37.03 sen above 1,500 kWh), plus 4.55 sen capacity and 12.85 sen network charges, an RM10 retail charge, and a monthly fuel adjustment (AFA). Homes using up to 1,000 kWh get an Energy Efficiency Incentive rebate. From September to 31 December 2026, homes using up to 800 kWh a month are exempt from AFA, the retail charge and SST.
If you own or rent a condo in Johor Bahru, you have probably opened a TNB bill since mid-2025 and wondered why it looks different. New lines such as “capacity”, “network” and “AFA” appeared, and the old tiered blocks disappeared. This guide explains the electricity tariff reform in Malaysia from 1 July 2025 in plain language, shows what a typical condo household pays, and covers what owners and landlords should do with the bill.
What changed in the TNB electricity tariff from July 2025?
The Energy Commission replaced the old five-block domestic tariff with a single rate made of separate, itemised components. The new structure applies from 1 July 2025 to 31 December 2027 for Peninsular Malaysia, with an average base tariff of 45.40 sen/kWh, according to Malay Mail’s report of the announcement.
| Bill component | Rate (domestic) | Notes |
|---|---|---|
| Energy (generation) charge | 27.03 sen/kWh up to 1,500 kWh; 37.03 sen/kWh above | Applies to all usage |
| Capacity charge | 4.55 sen/kWh | Applies to all usage |
| Network charge | 12.85 sen/kWh | Applies to all usage |
| Retail charge | RM10 a month | Waived at 600 kWh or less (800 kWh until 31 Dec 2026) |
| Automatic Fuel Adjustment (AFA) | Rebate or surcharge, set monthly | Normally capped at 3 sen/kWh either way without Cabinet approval |
| Energy Efficiency Incentive (EEI) | Rebate of up to 25 sen/kWh | Only for homes using 1,000 kWh or less |
Before AFA and rebates, the three per-unit charges add up to 44.43 sen/kWh for the first 1,500 kWh and 54.43 sen/kWh beyond that, as Paul Tan’s breakdown shows.
How the Energy Efficiency Incentive rewards lower usage
The EEI is a sliding rebate: the less you use, the bigger the discount per unit. It is applied automatically on the bill.
- 1–200 kWh: 25 sen/kWh rebate
- 301–350 kWh: 21 sen/kWh
- 451–500 kWh: 12 sen/kWh
- 551–600 kWh: 9 sen/kWh
- 751–800 kWh: 4 sen/kWh
- 901–1,000 kWh: 0.5 sen/kWh; nothing above 1,000 kWh
(Selected bands from RinggitPlus’s published table; there are 16 bands in total.) What this means for you: a studio or 1-bedroom unit running one or two air-conditioners in the evening often falls in the bands where the rebate is still meaningful.
What does a typical condo electricity bill look like?
RinggitPlus published worked comparisons of old and new bills when the reform began. They are a helpful guide to scale, though they do not include later AFA changes or the temporary 800 kWh exemption.
| Monthly usage | Old tariff | New tariff | Difference |
|---|---|---|---|
| 300 kWh | RM71.00 | RM65.79 | −RM5.21 |
| 600 kWh | RM219.80 | RM215.98 | −RM3.82 |
| 900 kWh | RM408.70 | RM418.35 | +RM9.65 |
| 1,200 kWh | RM593.71 | RM573.82 | −RM19.89 |
For your own unit, the most reliable figure comes from TNB’s bill calculator on the myTNB website, using the kWh reading from a recent bill.
What is AFA, and why does it change every month?
AFA (Automatic Fuel Adjustment) replaced the six-monthly ICPT surcharge. It moves monthly with fuel and currency costs. It was a rebate for most of late 2025 and early 2026 (as deep as −8.91 sen/kWh in November 2025), then turned into a surcharge from May 2026, reaching +3.80 sen/kWh in August and +3.67 sen/kWh in September 2026, according to Paul Tan’s monthly reports.
Households at or below 600 kWh a month are normally shielded from AFA. After a hot, hazy spell, the Prime Minister announced on 17 September 2026 that domestic users consuming up to 800 kWh are exempt from AFA, the retail charge and SST from 1 September to 31 December 2026, backdated with credits shown on October bills. TNB said almost 90% of domestic users in Peninsular Malaysia, more than eight million accounts, benefit. Whether this continues after December depends on further government decisions.
Time-of-Use (ToU): is it worth switching?
The optional ToU tariff charges a lower energy rate off-peak. Off-peak covers weekdays from 10pm to 2pm and all of Saturday and Sunday; peak is weekdays 2pm to 10pm, according to myTNB.
- Energy charge up to 1,500 kWh: 28.52 sen/kWh peak, 24.43 sen/kWh off-peak.
- Above 1,500 kWh: 38.52 sen/kWh peak, 34.43 sen/kWh off-peak.
- You need a smart meter (or remote-read meter) and must apply at a Kedai Tenaga.
ToU suits households that are out during weekday afternoons, such as cross-border commuters, and anyone charging an EV overnight. If you work from home with the air-conditioner on all afternoon, the general tariff is usually simpler.
But what if my bill suddenly jumps?
A sudden jump usually has one of three causes: crossing a usage threshold, a change in AFA, or an estimated reading. Check them in that order before assuming something is wrong.
- Thresholds: going from 790 kWh to 810 kWh this year moves you out of the AFA, retail charge and SST exemption, and above 1,000 kWh you lose the EEI rebate entirely. A few extra hours of air-conditioning in a hot month can do this.
- AFA: above the exemption level, the monthly AFA rate now adds a surcharge instead of a rebate.
- Estimated readings: if the bill shows an estimate, compare it with your actual meter and contact TNB through the myTNB app to correct it.
What it means for condo owners and landlords
Each condo unit has its own TNB account, so electricity is paid by whoever holds the account, normally the owner, with tenants reimbursing or taking over payment under the tenancy agreement.
- Keep the account in the owner’s name when renting out, and state in the tenancy agreement that the tenant pays actual usage each month. This avoids deposit and transfer paperwork every time a tenant changes.
- Read the meter at handover and photograph it with the date, both at move-in and move-out.
- Choose efficient appliances when furnishing. Inverter air-conditioners and LED lighting help tenants stay in the cheaper EEI bands, which makes your unit easier to rent. Our guide to furnishing a rental unit in JB covers the checklist.
- Use utilities in your budget. The JB property calculator and cost of living JB vs Singapore guide help you plan total monthly costs.
Common-area electricity (lifts, lobbies, pools) is paid by the management body and recovered through maintenance fees, so it does not appear on your unit’s TNB bill.
Setting up a new home? See our companion guides on Ranhill SAJ water supply and internet providers for JB condos. For new launches near the RTS such as Causewayz Square, WhatsApp us for the latest SPA price list and floor plans.
Sources
- Paul Tan: TNB new electricity tariff calculation from July 2025
- RinggitPlus: Your new TNB bill explained (Aug 2025)
- Malay Mail: Energy Commission unveils new electricity tariff (20 Jun 2025)
- myTNB: Tariff
- Paul Tan: AFA rate August 2026 (with monthly history)
- Paul Tan: AFA rate September 2026
- The Star: Over eight million households to benefit from higher power subsidy threshold (18 Sep 2026)
- The Vibes: Electricity subsidy protection extended to 800 kWh (17 Sep 2026)
This guide is general information, not financial advice.