Electric Shock Incoming: Brace For TNB Tariff Hike In July 2025
The electricity tariff under Regulatory Period 4 (RP4) will be at 45.62 sen/kWh until 2027.
Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
Prepare to scrape and save because we’ll be paying more for electricity next year.
Tenaga Nasional Bhd has proposed a new tariff schedule with a base tariff of 45.62 sen per kilowatt-hour for Peninsular Malaysia under Regulatory Period 4 (RP4) which will be implemented from 1 July 2025 to December 2027.
It’s a 14.2% increase from the current base tariff of 39.95 sen/kWh between 2022 and 2024 under RP3.
However, we don’t need to go back to candles and hand fans yet. There’s a 6-month respite because the Electricity Industry Fund will cover the difference from January to June 2025 while consumers adjust to the new tariff.
Consumers will continue paying the current electricity tariff which has been in place and unchanged since 2014 until 30 June 2025.
The government’s decision to implement RP4 is a testament of the government’s commitment to the Incentive Based Regulation (IBR) framework, which has been the pillar of sustainability and stability of the electricity supply industry.
Tenaga Nasional Bhd
TNB said the RP4 provides a transparent regulatory framework, advocates cost efficiencies, and ensures the financial and operational sustainability of the system and industry.
In addition, TNB said the regulatory rate of return has been maintained at 7.3% as per RP3, which enables the utility firm to make essential investments in the industry to ensure a continuous and reliable electricity supply to meet increasing demand.
Generation costs remain the largest component of the electricity tariff since gas and coal continue to be the primary fuel sources for electricity generation during this time.
READ MORE: Where Does Malaysia’s Energy Come From & What’s Next?
Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the Imbalance Cost Pass-Through (ICPT) mechanism.
TNB remains neutral in this regard and there will be no impact on the company’s business operations or financial position.
Tenaga Nasional Bhd
Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
