TNB has been rolling out smart meters across Peninsular Malaysia for several years, and many households notice the same thing after installation, their electricity bill looks higher than before.

As of late 2025, more than 5 million smart meters have been installed, with a target of 10.4 million homes by 2028. For some households, the first bill after installation comes as a surprise, raising a familiar question: Is the smart meter actually making electricity more expensive? 

How Smart Meters Differ From Traditional Meters

Under the old system, electricity meters were read manually. A TNB meter reader would visit once a month and record the numbers shown on the meter. If access was blocked, TNB would issue an estimated bill based on past usage and adjust it later when an actual reading was taken. This happened frequently during the MCO years, when many households went months without a physical meter reading.

Smart meters remove the manual reading step entirely. They record electricity usage automatically and transmit the data to TNB at regular intervals using radio-frequency communication. The same information is also available to consumers through the myTNB app, so you can see your usage without waiting for a monthly bill.

Malaysia is the first country in Southeast Asia to roll out smart meters nationwide. Installation is free, and TNB typically sends a notification letter about a month before work begins in your area. You can check whether your neighbourhood is scheduled for installation onTNB’s smart meter page.

Why Bills Often Go Up After Installation

When bills increase after a smart meter is installed, the assumption is usually that the meter is charging more. Actually, the smart reader is more accurate, providng real usage rather than a manually read estimate. Using the old meters, if a household consistently used more electricity than what was estimated, the gap only showed up later, or not at all if billing continued to be based on the estimates.

To put this in ringgit terms, a household that was actually using RM220 worth of electricity each month but receiving bills based on an estimate closer to RM180 may not have noticed the difference. When smart meter readings replace estimates, the jump from RM180 to RM220 feels sudden, even though it reflects the real usage. This often happens alongside other changes that affect consumption, such as hotter weather leading to longer air-conditioner use, more time spent working from home, or new appliances pushing usage into a higher billing tier.

Understanding Your Electricity Charges

Since 1 July 2025, TNB has restructured domestic electricity billing. Instead of the old five-tier block system, bills are now made up of several components applied across usage levels. Here’s a quick summary of the main charges.

Component	Rate
Energy charge (first 1,500 kWh)	27.03 sen/kWh
Energy charge (above 1,500 kWh)	37.03 sen/kWh
Capacity charge	4.55 sen/kWh
Network charge	12.85 sen/kWh
Retail charge	RM10/month (waived if usage is 600 kWh or below)

Combined, households using up to 1,500 kWh per month pay about 44.43 sen per kWh before fuel adjustments, rebates, or taxes.

Bills are also affected by the Automatic Fuel Adjustment (AFA), which replaced the previous ICPT surcharge. The AFA adjusts monthly based on global fuel prices and is capped at plus or minus 3 sen per kWh. Households using 600 kWh or less per month are fully protected from any AFA surcharge.

In practical terms, a household using 500 kWh per month would pay about RM222 in combined charges, with the RM10 retail charge waived. A household using 900 kWh would pay roughly RM400 before any rebates.

Rebates For Moderate Electricity Use

The Energy Efficiency Incentive rebate applies to domestic users consuming 1,000 kWh or less per month. Depending on usage, the rebate can reduce the energy charge by up to 25 sen per kWh.

TNB estimates that around 85% of households will pay the same or less under the new tariff structure, particularly those keeping monthly usage below 1,000 kWh.

For households that want a clearer picture,TNB’s electricity bill calculator allows you to estimate charges based on your own consumption.

How Smart Meters Can Help You Manage Costs

A smart meter will not automatically lower your electricity bill. Its value lies in providing you with a clearer picture of how much electricity you’re using, and when you’re using it.

Through the myTNB app, users can track daily consumption, compare usage across months, and spot unusual spikes. This makes it easier to identify habits or appliances that quietly drive costs higher.

If daily usage jumps overnight, it may point to air-conditioner settings that are lower than necessary or older appliances drawing more power than expected. These patterns are hard to spot from a monthly bill alone.

Smart meters also allow households to opt into TNB’s Time-of-Use (ToU) tariff, available to residential users since 1 July 2025. Under this scheme, electricity is cheaper during off-peak hours and slightly more expensive during weekday peak hours.

Off-peak hours apply before 2pm and after 10pm on weekdays, as well as all day on weekends. For households using under 1,500 kWh per month, the off-peak energy rate is 24.43 sen per kWh, compared to 27.03 sen on the standard tariff. 

Peak-hour energy costs rise to 28.52 sen per kWh. Shifting around 400 kWh of usage to off-peak hours can save about RM10.40 per month. It’s not a huge amount on its own, but for households whose routines already fall outside peak hours, it’s a small win that can make monthly bills feel a little more manageable.

As of late 2025, more than 70,000 households had signed up for the ToU tariff. Applications can be made through the myTNB app, themyTNB website, or at Kedai Tenaga outlets. 

What To Do If Your TNB Bill Still Doesn’t Look Right

If your electricity usage habits have not changed, but your bill has increased significantly after installation, it is worth checking the numbers.

Start by reviewing your usage data in the myTNB app. Compare daily and monthly consumption with the same period last year, and factor in changes such as new appliances, extra air-conditioning units, or more time spent at home.

If the figures still don’t add up, you can contact TNB’s CareLine at 1-300-88-5454 to request a meter inspection. Smart meters are tested and certified by SIRIM and regulated by the Malaysian Communications and Multimedia Commission (MCMC). While faults are uncommon, TNB does conduct accuracy checks and will adjust billing if a meter is found to be defective.

Having your usage data on hand helps speed things up.

So, Will Your TNB Bill Go Up Or Down?

Whether your bill goes up or down largely depends on how accurate your previous readings were. 

For young working Malaysians balancing rent, loan repayments, and everyday expenses, the real value of a smart meter is clarity. Seeing your usage day by day makes it easier to understand where your money is going and adjust when you can.

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