Understanding Malaysia’s Time of Use (ToU) Tariff Expansion: How It Helps You Save

Explore how Malaysia’s new Time of Use (ToU) electricity tariff empowers you to save by shifting energy usage to off-peak hours and take control of your monthly bills more efficiently.

As of 1st July 2025, Tenaga Nasional Berhad (TNB) is rolling out a new, restructured electricity tariff system in Peninsular Malaysia. This change is more than just a pricing update – it's a move towards a smarter, more sustainable energy future under the National Energy Transition Roadmap (NETR).

One of the most impactful features of this transformation is the expansion of the Time of Use (ToU) Tariff. Here's what you need to know and how it can help you make better energy decisions – and reduce your monthly bill.

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What Is the Time of Use (ToU) Tariff?

ToU is a billing scheme that offers different electricity rates based on the time of day. The idea is simple:

  • Use electricity when demand is low (Off-Peak) → Pay less
  • Use electricity during high-demand hours (Peak) → Pay slightly more

This system empowers consumers to shift their usage habits and save money by doing energy-intensive tasks, like using air conditioners, washing machines, or charging electric vehicles, during Off-Peak hours.


When Are Peak and Off-Peak Hours?

Here’s how the time slots are divided:

Peak and Off-Peak Hours Table


Why Switch to ToU?

Here’s how both households and businesses can benefit from ToU:

For Homeowners:

  • Lower Bills: By shifting appliance use to morning or late-night, you enjoy lower rates.
  • Example: Run your washing machine or charge your EV after 10PM instead of during peak evening hours.

For Businesses:

  • Operational Efficiency: Factories, bakeries, or even cold-storage units can schedule production during Off-Peak to cut down electricity costs.
  • Example: A facility operating heavy machinery can shift part of the process before 2PM or after 10PM.


How Much Can You Save?

Savings will vary depending on your consumption pattern, but the more flexible your usage is, the more you can reduce your cost. TNB offers a Bill Calculator to help you compare your current bill (General Tariff) with an estimated ToU bill. It's a useful tool to assess if the switch will benefit your household or business.


Conclusion

The Time of Use Tariff is a smart option for anyone ready to rethink how and when they use electricity. Whether you’re a family looking to cut your bill or a business aiming to run leaner, ToU offers more control, better planning, and greater transparency.

Thinking about pairing ToU with a solar system? That’s even better. With strategic scheduling, you could maximise both solar generation and Off-Peak rates for long-term savings. Get in touch with buySolar today to find out more.