Electric vehicle (EV) owners and high-usage households can look forward to cheaper electricity bills soon, thanks to a new tariff option by Tenaga Nasional Berhad (TNB). Beginning 1 July 2025, domestic customers will have access to a Time of Use (ToU) pricing scheme—a system that charges different electricity rates depending on the time of day.
This is the first time ToU pricing is made available to residential users, following a restructuring of Malaysia’s electricity tariff framework in line with the National Energy Transition Roadmap (NETR). The move aims to encourage energy efficiency while giving households more control over their electricity spending.
What Is Time of Use (ToU) And Why Does It Matter?
Under the ToU scheme, electricity is cheaper during off-peak hours—typically late at night and during the day when overall demand is low. This means households can lower their bills simply by shifting high-energy activities like EV charging, laundry, water heating, or cooking to off-peak times.
On the flip side, rates are slightly higher during peak hours when national energy demand spikes, typically in the late afternoon to evening.
Previously, ToU pricing was only available to commercial and industrial users. Now, it’s being extended to:
- Domestic users (households)
- Non-domestic low-voltage users (e.g. small businesses)
This rollout is only applicable to Peninsular Malaysia and does not apply to Sabah or Sarawak.
Peak vs Off-Peak Hours
Here’s when electricity will be cheapest under the ToU scheme:
Weekdays (Monday–Friday):
- Peak hours: 2:00 PM – 10:00 PM
- Off-peak hours: 10:00 PM – 2:00 PM (next day)
Weekends (Saturday & Sunday):
- Off-peak all day (24 hours)
That means there are 16 off-peak hours daily on weekdays, and 48 hours total on weekends to take advantage of lower rates.
What Are The New Rates?
If you opt in to the Domestic ToU scheme, your electricity rate will change depending on your usage and time of day:
For consumption up to 1,500 kWh/month:
- Peak rate: 28.52 sen/kWh
- Off-peak rate: 24.43 sen/kWh
- Retail charge: RM10/month (waived if under 600 kWh)
For consumption above 1,500 kWh/month:
- Peak rate: 38.52 sen/kWh
- Off-peak rate: 34.43 sen/kWh
- Retail charge: RM10/month
These ToU off-peak rates are 2.6 sen cheaper per kWh than the standard all-day rate, which is 27.03 sen/kWh for usage below 1,500 kWh and 37.03 sen/kWh for above.
What Else Is On Your Bill?
Under the new tariff structure, your electricity bill will be broken down into:
- Energy Charge – Cost of generating electricity, including fuel
- Automatic Fuel Adjustment (AFA) – Adjusted monthly based on market fuel prices and currency fluctuations
- Capacity Charge – To cover standby generation capacity
- Network Charge – Cost of transmission and infrastructure
- Retail Charge – Admin costs (waived if your usage is under 600 kWh)
There are also Energy Efficiency (EE) Incentives for customers who keep their usage below 1,000 kWh/month, and additional savings if under 600 kWh.
Is It Worth It?
Switching to the ToU scheme could lead to monthly savings—especially for EV owners who charge their vehicles overnight or during weekends. However, the key is usage timing. If your consumption typically happens during off-peak hours, the savings could be significant over time.
That said, peak rates under ToU are slightly higher than the standard flat rate, so if you can’t shift your major power use to off-peak times, you may end up paying more.
Example scenarios like EV charging, heavy laundry use, or running water heaters can be scheduled for off-peak hours to maximise savings.
Who Can Apply?
To qualify for the ToU scheme, you must have:
- A Smart Meter, or
- A Current Transformer (CT) or Remote Meter Reading (RMR) meter
You can check your meter status on the myTNB app or by visiting your local Kedai Tenaga.
The ToU scheme is optional, and you must apply manually—it does not switch automatically. Visit any Kedai Tenaga outlet to request the change.
Tips To Lower Your Electricity Bill
- Monitor your daily usage on the myTNB app
- Run appliances like washing machines, dishwashers, water heaters and ovens during off-peak hours
- Charge your EVs overnight or during weekends
- Keep monthly consumption below 600 kWh to waive the RM10 retail charge
- Consider a solar PV system if your household has consistently high usage
With the ToU option, domestic customers now have more flexibility and incentive to plan their power usage wisely.
