New RP4 Electricity Tariff Structure Now in Effect – What Retailers Should Know

New Electricity Tariff Restructuring (RP4) – What Retailers Need to Know

Effective 1 July 2025, the Government of Malaysia, via the Energy Commission (ST) and under the Incentive-Based Regulation (IBR) framework, has implemented a new electricity tariff structure known as RP4, which will run until 31 December 2027.

The restructuring is guided by principles of fairness, transparency, and equity, aiming to ease the financial burden of consumers while ensuring a sustainable electricity supply.

Key Highlights:

• Average Base Tariff revised to 45.40 sen/kWh (previously 45.62 sen/kWh).
• Introduction of new tariff categories for Low, Medium, and High Voltage users.
• Itemised billing with clearer breakdowns including generation, capacity, network, and retail charges.
• Incentives & rebates for domestic users (up to 1,000kWh) and vulnerable groups.
• Exemptions on SST (8%), retail charges, and fuel cost adjustments for specific usage tiers.
• Domestic and commercial customers will see revised charges, with some medium voltage businesses seeing up to 21% savings.

Tools & Support:

• Users can access a bill calculator, comparison tools, and FAQs via the myTNB Portal.
• Tips for businesses include using Time-of-Use (ToU) schemes, adopting Virtual Energy Managers, and exploring renewable energy options.

The restructuring aims to encourage smarter energy consumption and cost optimisation across all consumer segments.

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