How To Lower Your Electricity Bill With TNB's Time-of-Use Tariff

Samuel Chua

15th July 2025 - 5 min read

Everyone wants to find smart ways to reduce their monthly bills, and your electricity bill is a great place to start. Effective 1st July 2025, Tenaga Nasional Berhad (TNB) has expanded its optional Time-of-Use (TOU) tariff to all residential homes. Previously limited to commercial sectors, this move is part of Malaysia’s National Energy Transition Roadmap (NETR).

But what exactly is it, and is it the right choice for you? This guide breaks down what you need to know about the TOU tariff, how it affects your bill, and who stands to benefit the most.

How Does the Time-of-Use Tariff Work?

The concept behind the Time-of-Use tariff is simple: the price you pay for electricity changes depending on the time of day. It’s designed to reward you for using energy when there’s less demand on the national grid. The day is divided into two periods: Peak and Off-Peak.

During weekdays, from Monday to Friday, the more expensive Peak Hours run from 2:00 PM to 10:00 PM. The rest of the time, from 10:00 PM until 2:00 PM the next day, is considered the cheaper Off-Peak period. This works out to 40 peak hours and 128 off-peak hours in a typical week, giving you plenty of time to save.

On weekends (Saturday and Sunday) and on 15 specific public holidays, the entire day is classified as Off-Peak. The public holidays include New Year’s Day, the first and second days of Chinese New Year, the first and second days of Hari Raya Aidilfitri, Labour Day, Wesak Day, the Yang di-Pertuan Agong’s Birthday, Hari Raya Aidiladha, Awal Muharram, Independence Day, Malaysia Day, Maulidur Rasul, Deepavali Day and Christmas Day.

Comparing the Costs: TOU vs Standard Tariff

To understand potential savings, you need to look at your entire bill. Under the new structure, your bill includes several components.

1. Energy Charges

Here is how the TOU energy rates compare to the standard tariff:

Monthly Usage Tier	Standard Tariff Rate (sen/kWh)	TOU Tariff (Peak Rate)	TOU Tariff (Off-Peak Rate)
Up to 1,500 kWh	27.03	28.52	24.43
Above 1,500 kWh	37.03	38.52	34.43

2. Other Bill Components

Besides the TOU energy rate, your total bill also includes several other components. These consist of a Capacity Charge of 4.55 sen/kWh and a Network Charge of 12.85 sen/kWh, which cover the costs of maintaining the national power grid. There is also a fixed Retail Charge of RM10 each month; however, this charge is waived for any month where your household’s electricity consumption remains below 600 kWh. Lastly, the bill will reflect the Automatic Fuel Adjustment (AFA) rate, which can change monthly depending on global fuel prices.

To put it in perspective, shifting 400 kWh of usage to off-peak hours can save you about RM10.40 per month, a saving that applies regardless of whether your total monthly consumption is above or below 1,500 kWh. You may also be eligible for an Energy Efficiency Incentive.

Who Can Benefit Most from the TOU Tariff?

The TOU tariff is open to both residential and non-domestic low-voltage users. It is particularly beneficial for households whose lifestyles align with off-peak hours.

For instance, electric vehicle (EV) owners who charge their cars overnight can see lower costs. Similarly, families who run high-energy appliances like air conditioners, washing machines, or water heaters late at night or on weekends may also find the plan advantageous.

How to Apply for the TOU Tariff

There are several convenient ways to apply for the Time-of-Use tariff, allowing you to choose the method that works best for you. You can apply digitally through the official myTNB portal, with the option also becoming available on the myTNB mobile app from 1st August 2025. Alternatively, you can send your application via email, or visit your nearest Kedai Tenaga for in-person assistance.

For any application method, you will need to provide a completed application form along with a copy of your personal identification, such as your MyKad or passport. For non-domestic accounts, a business registration certificate and a letter of authorisation are also required.

Key Things to Know Before You Switch

Before you apply, there are a few final details to consider. The TOU scheme is open to all registered TNB customers, regardless of your meter type, including standard meters, Smart Meters, Current Transformer (CT), or Remote Meter Reading (RMR) meters. You can check your eligibility on the myTNB app or at a Kedai Tenaga.

The activation time varies. If you have a Smart Meter, the new tariff can take effect within five working days. For other meter types, the process may take longer.

Once your application is approved, a RM10 Stamp Duty will be added to your bill. If you decide the TOU tariff isn’t working for you after trying it, it is recommended to wait for at least one full bill cycle to properly assess the financial impact before switching back. A second RM10 Stamp Duty will apply for this change.

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