7th May 2020 - 7 min read
With the enforcement of the Movement Control Order (MCO) since 18 March, the vast majority of Malaysians have been spending most of their time at home. While this measure is crucial in breaking the COVID-19 infection chain, an inevitable side effect is the increased electricity usage across Malaysian homes.
Thankfully, as part of the PRIHATIN Economic Stimulus Package announced by the Prime Minister, Malaysians will get to enjoy discounts on their electricity bills to ease the financial burden of this increased usage. In fact, with these discounts you may find that your upcoming electricity bills are not only less than what you would have anticipated, they could even be lower than your usual amount!
All residential electricity users will be entitled to these discounts for a period of six months, covering electricity consumption starting from 1 April to 30 September 2020. If your billing cycle falls between two calendar months, the discounts will be prorated to cover power consumption during the valid dates only.
The bill discounts will be provided in tiers based on your electricity consumption – the lower your usage, the higher the percentage of discounts you’ll get to enjoy. See the table below for details.
Monthly electricity consumption |
Billed amount before discount | Discount provided |
1-200 kWh |
RM43.60 and below | 50% |
201-300 kWh |
RM43.70-RM77.00 |
25% |
301-600 kWh | RM77.10-RM231.80 |
15% |
600 kWh and above | RM231.90 and above |
2% |
As a residential electricity user, your electricity consumption is charged in the following tariff blocks based on the monthly electricity usage stated on your bill.
First 200 kWh (1-200 kWh) per month | RM0.218 per kWh |
Second – Next 100 kWh (201-300 kWh) per month | RM0.334 per kWh |
Third – Next 300 kWh (301-600 kWh) per month | RM0.516 per kWh |
Fourth – Next 300 kWh (601-900 kWh) per month | RM0.546 per kWh |
Next kWh (901 kWh onwards) per month | RM0.571 per kWh |
Additionally, your bill will also include a KWTBB surcharge and a service tax if your monthly consumption exceeds certain amounts.
KWTBB, which stands for Kumpulan Wang Tenaga Boleh Baharu or the Renewable Energy Fund, is a fund collected by the government through consumers’ electricity consumption to promote the growth of electricity generation from renewable energy resources. It is collected as a 1.6% surcharge on the overall amount of your electricity bill if your monthly consumption is more than 300 kWh.
The service tax, on the other hand, is a 6% government tax imposed only on usage blocks of above 600 kWh within a month’s bill where the billing period is 28 days and above.
This sample TNB bill gives a better idea of where you can find all of the charges mentioned above.
KWTBB surcharge
= RM (kWh + Diskaun Rangsangan Ekonomi) x 1.6%
= (RM309.88 – RM1.40) x 1.6%
= RM4.94
Service tax
= (Amount of bill above 600 kWh + Diskaun Rangsangan Ekonomi) x 6%
= (RM78.08 – RM0.35) x 6%
= RM4.66
Here are some scenarios to illustrate how the discounts work on different levels of monthly electricity consumption.
Sample bill details and calculation
For prorated consumption from 8 to 31 March 2020 (24 days):
Total usage | 24 days x 6 kWh = 144kWh |
Total usage charges | 144 kWh x RM0.218 = RM31.39 |
For prorated consumption from 1 to 7 April 2020 (7 days):
Total usage | 7 days x 6 kWh = 42kWh |
Total usage charges | 42 kWh x RM0.218 = RM9.16 |
Total usage charges after 50% discount | RM9.16 – 50% (RM4.58) = RM4.58 |
Total bill charges for consumption from 8 March to 7 April 2020 with 50% discount: RM31.39 + RM4.58 = RM35.97
Sample bill details and calculation
For prorated consumption from 8 to 31 March 2020 (24 days):
Total usage | 24 days x 8.97 kWh = 215 kWH |
Usage of the first 200 kWh | 24/31 days x 200 kWh = 155 kWh |
Usage charges on the first 200 kWh | 155 kWh x RM0.218 = RM33.79 |
Remaining usage | 215 kWh – 155 kWh = 60 kWh |
Usage charges on the remaining usage | 60 kWh x RM0.334 = RM20.04 |
Total usage charges | RM33.79 + RM20.04 = RM53.83 |
For prorated consumption from 1 to 7 April 2020 (7 days):
Total usage | 7 days x 8.97 kWh = 63 kWH |
Usage of the first 200 kWh | 7/31 days x 200 kWh = 45 kWh |
Usage charges on the first 200 kWh | 45 kWh x RM0.218 = RM9.81 |
Remaining usage | 63 kWh – 45 kWh = 18 kWh |
Usage charges on the remaining usage | 18 kWh x RM0.334 = RM6.01 |
Total usage charges | RM9.81 + RM6.01 = RM15.82 |
Total usage charges after 25% discount | RM15.82 – 25% (RM3.96) = RM11.86 |
Total bill charges for consumption from 8 March to 7 April 2020 with 25% discount: RM53.83 + RM11.86 = RM65.69
Sample bill details and calculation
For prorated consumption from 8 to 31 March 2020 (24 days):
Total usage | 24 days x 13.7 kWh = 329 kWH |
Usage of the first 200 kWh | 24/31 days x 200 kWh = 155 kWh |
Usage charges on the first 200 kWh | 155 kWh x RM0.218 = RM33.79 |
Usage of the second 100 kWh | 24/31 days x 100 kWh = 77 kWh |
Usage charges on the second 100 kWh | 77 kWh x RM0.334 = RM25.72 |
Remaining usage | 329 kWh – 155 kWh – 77 kWh = 97 kWh |
Usage charges on the remaining usage | 97 kWh x RM0.516 = RM50.05 |
Total usage charges | RM33.79 + RM25.72 + RM50.05 = RM109.56 |
For prorated consumption from 1 to 7 April 2020 (7 days):
Total usage | 7 days x 13.7 kWh = 96 kWH |
Usage of the first 200 kWh | 7/31 days x 200 kWh = 45 kWh |
Usage charges on the first 200 kWh | 45 kWh x RM0.218 = RM9.81 |
Usage of the second 100 kWh | 7/31 days x 100 kWh = 23 kWh |
Usage charges on the second 100 kWh | 23 kWh x RM0.334 = RM7.68 |
Remaining usage | 96 kWh – 45 kWh – 23 kWh = 28 kWh |
Usage charges on the remaining usage | 28 kWh x RM0.516 = RM14.45 |
Total usage charges | RM9.81 + RM7.68 + RM14.45 = RM31.94 |
Total usage charges after 15% discount | RM31.94 – 15% (RM4.79) = RM27.15 |
KWTBB surcharge:
Total bill charges for consumption from 8 March to 7 April 2020 with 15% discount: RM109.56 + RM27.15 + RM2.19 = RM138.90
Sample bill details and calculation
For prorated consumption from 8 to 31 March 2020 (24 days):
Total usage | 24 days x 20.32 kWh = 488 kWH |
Usage of the first 200 kWh | 24/31 days x 200 kWh = 155 kWh |
Usage charges on the first 200 kWh | 155 kWh x RM0.218 = RM33.79 |
Usage of the second 100 kWh | 24/31 days x 100 kWh = 77 kWh |
Usage charges on the second 100 kWh | 77 kWh x RM0.334 = RM25.72 |
Usage of the third 300 kWh | 24/31 days x 300 kWh = 232 kWh |
Usage charges on the third 300 kWh | 232 kWh x RM0.516 = RM119.71 |
Remaining usage | 488 kWh – 155 kWh – 77 kWh – 232 kWh = 24 kWh |
Usage charges on the remaining usage | 24 kWh x RM0.546 = RM13.10 |
Total usage charges | RM33.79 + RM25.72 + RM119.71 + RM13.10 = RM192.32 |
Taxable amount for service tax | RM13.10 |
For prorated consumption from 1 to 7 April 2020 (7 days):
Total usage | 7 days x 20.32 kWh = 142 kWH |
Usage of the first 200 kWh | 7/31 days x 200 kWh = 45 kWh |
Usage charges on the first 200 kWh | 45 kWh x RM0.218 = RM9.81 |
Usage of the second 100 kWh | 7/31 days x 100 kWh = 23 kWh |
Usage charges on the second 100 kWh | 23 kWh x RM0.334 = RM7.68 |
Usage of the third 300 kWh | 7/31 days x 300 kWh = 68 kWh |
Usage charges on the third 300 kWh | 68 kWh x RM0.516 = RM35.09 |
Remaining usage | 142 kWh – 45 kWh – 23 kWh – 68 kWh = 6 kWh |
Usage charges on the remaining usage | 6 kWh x RM0.546 = RM3.28 |
Total usage charges | RM9.81 + RM7.68 + RM35.09 + RM3.28 = RM55.86 |
Total usage charges after 2% discount | RM55.86 – 2% (RM1.12) = RM54.74 |
Taxable amount for service tax | RM3.28 |
Taxable amount for service tax after 2% discount | RM3.28 – 2% (RM0.07) = RM3.21 |
Total taxable amount for service tax:
Service tax:
KWTBB surcharge:
Total bill charges for consumption from 8 March to 7 April 2020 with 2% discount: RM192.32 + RM54.74 + RM0.98 + RM3.95 = RM251.99
The COVID-19 pandemic has brought about economic repercussions on a global scale, and many Malaysians’ livelihoods have been adversely affected by it. The electricity bill discounts provided for consumption from 1 April to 30 September 2020 under the PRIHATIN Economic Stimulus package will help us all to lighten our financial burden as we weather the challenging months ahead.
Finally, another thing to be aware of is that throughout the entire MCO period, TNB will be pausing all meter readings and hence your bills and discounts will be estimated based on your previous month’s usage. Rest assured that TNB will recalculate your electricity consumption and make the necessary bill adjustments once the MCO is lifted and they are able to record accurate bill readings again.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world
Comments (0)