Tenaga Nasional Berhad today confirmed the Malaysian Government’s approval of a revised electricity tariff schedule for Regulatory Period 4 (RP4) under the Incentive-Based Regulation framework, set to take effect from July 1, 2025. The announcement follows a press release issued by the Energy Commission under the Ministry of Energy Transition and Water Transformation on June 20, 2025, titled ‘New Electricity Schedule: Over 23.6 Million Peninsular Malaysian Domestic Users Enjoy Fairer Rates.’
This new tariff schedule will supersede the existing one, which has been in place since 2014, marking a significant update to how electricity costs are structured for consumers in Peninsular Malaysia.
In addition to the tariff revision, the Government has also approved an enhanced fuel cost adjustment mechanism, dubbed the Automatic Fuel Adjustment (“AFA”), which will also commence on July 1, 2025. This AFA mechanism will replace the current Imbalance Cost Pass-Through (“ICPT”) mechanism. TNB highlighted that this change will preserve the neutral impact on the utility company, ensuring that fluctuations in fuel costs do not directly affect its earnings.
TNB expressed its view that the implementation of the RP4 Revised Electricity Tariff Schedule for Peninsular Malaysia is a positive development for the company, particularly in its efforts to deliver on the National Energy Transition Roadmap (“NETR”). The utility giant reiterated its commitment to ensuring a reliable and continuous supply of electricity to all its customers across Peninsular Malaysia.
