Electricity Tariff Increase: TNB Announces 14.2% Hike Starting July 2025
Tenaga Nasional Bhd (TNB) has announced an increase in the base electricity tariff for Peninsular Malaysia. Starting July 1, 2025, the tariff will rise from 39.95 sen to 45.62 sen per kilowatt-hour (kWh) for the regulatory period 2025-2027 (RP4). This adjustment represents a 14.2% hike from the previous regulatory period (RP3: 2022-2024), highlighting the rising cost of energy generation and distribution.
TNB’s capital expenditure (capex) and operating expenditure (OPEX) are set to increase significantly under RP4. The CAPEX for regulated transmission and distribution businesses is projected at RM42.82 billion, more than double the RM20.55 billion allocated in RP3.
Similarly, OPEX will rise to RM20.78 billion from RM17.69 billion in the previous period. Despite these increases, the regulatory rate of return will remain steady at 7.3%.
Generation costs continue to dominate electricity tariffs, with gas and coal serving as primary fuel sources. Additional generation costs from higher fuel prices will be passed on through the Imbalance Cost Pass-Through (ICPT) mechanism, which allows TNB to adjust for uncontrollable fuel and generation costs after a six-month lag, subject to government approval.
TNB has emphasized its commitment to ensuring a reliable and continuous electricity supply while supporting the country’s energy transition agenda. This includes enhancing customer service, upgrading infrastructure, and investing in renewable energy projects to meet Malaysia’s growing energy demands responsibly.
For Malaysians, this electricity tariff hike underscores the importance of energy efficiency and exploring sustainable energy alternatives. Adopting measures such as solar panel installations, energy-efficient appliances, and improved insulation can help households and businesses reduce electricity costs while contributing to sustainability efforts.
Stay informed and prepare for these electricity tariff changes to manage your usage effectively. Contact Verdant Solar today to explore additional discounts and enjoy the benefits of cleaner, more affordable energy.
