TNB Tariff 2026 for Factories: Industrial Electricity Rates, ToU, Maximum Demand and AFA

Key Takeaways

• Since 1 July 2025, TNB bills factories by supply voltage instead of by "industrial" or "commercial" category: Non-Domestic Low Voltage (old Tariff D), Medium Voltage (old E1 and E2) and High Voltage (old E3), each with a General and a Time of Use (ToU) option.
• A low voltage factory pays 50.68 sen/kWh before fuel adjustment (27.03 energy + 8.83 capacity + 14.82 network) plus RM20 a month. A medium voltage factory pays 29.83 sen/kWh for energy plus RM89.27 per kW of maximum demand each month (RM29.43 capacity + RM59.84 network) and RM200.
• The Automatic Fuel Adjustment (AFA) changes every month and has been a surcharge since May 2026: +3.61 sen/kWh for October 2026, with an outlook of +4.27 to +7.59 sen/kWh for November 2026 to January 2027. The 800 kWh relief announced in September 2026 is for homes only.
• ToU peak is 2pm to 10pm on weekdays. Nights, mornings, weekends and selected public holidays are off-peak, and on MV and HV ToU any maximum demand recorded off-peak is not charged.
• A power factor below 0.85 adds 1.5% to the bill for every 0.01 shortfall. At 0.80 that is a 7.5% surcharge, about RM9,000 on a RM120,000 bill.
• Before you rent or buy a factory, ask for 12 months of TNB bills. The tariff, recorded maximum demand and power factor on them decide most of your power cost.

What is the TNB tariff for factories in 2026? It depends on the voltage the factory takes supply at. Most smaller factories are on the Non-Domestic Low Voltage tariff at 50.68 sen/kWh plus the monthly AFA (+3.61 sen in October 2026), about 54.3 sen per unit all in. Larger plants on medium voltage pay 29.83 sen/kWh plus RM89.27 for every kW of maximum demand, so their bill depends as much on their peak load as on the units they use.

All rates below are from TNB's tariff schedule effective 1 July 2025, still in force in October 2026.

TNB tariff 2026: what changed for factories

The structure came in with Regulatory Period 4 (2025 to 2027), which has an average base tariff of 45.40 sen/kWh for Peninsular Malaysia, according to Suruhanjaya Tenaga. Three changes matter to industry.

1. Categories follow voltage, not activity. The old commercial (B, C1, C2) and industrial (D, E1, E2, E3) split is gone.
2. The bill is itemised into energy, AFA, capacity, network and retail charges. On medium and high voltage, the old maximum demand charge is now split into capacity and network charges, both billed per kW.
3. Fuel costs pass through monthly. AFA replaced the six-monthly ICPT: a rebate when fuel is cheaper than the base assumption, a surcharge when it is dearer.

Old tariff	New tariff from 1 July 2025
D (low voltage industrial), B (low voltage commercial)	Non-Domestic Low Voltage General or ToU
E1 (MV general industrial), C1	Non-Domestic Medium Voltage General
E2 (MV peak/off-peak industrial), C2	Non-Domestic Medium Voltage ToU
E3 (HV peak/off-peak industrial), C4	Non-Domestic High Voltage ToU

Industrial electricity tariff Malaysia: 2026 rates

Tariff	Energy charge	Capacity charge	Network charge	Retail charge
Low Voltage General	27.03 sen/kWh	8.83 sen/kWh	14.82 sen/kWh	RM20/month
Low Voltage ToU	28.52 peak, 24.43 off-peak sen/kWh	8.83 sen/kWh	14.82 sen/kWh	RM20/month
Medium Voltage General	29.83 sen/kWh	RM29.43/kW	RM59.84/kW	RM200/month
Medium Voltage ToU	31.32 peak, 27.23 off-peak sen/kWh	RM30.19/kW (peak MD)	RM66.87/kW (peak MD)	RM200/month
High Voltage General	43.03 sen/kWh	RM16.68/kW	RM14.53/kW	RM250/month
High Voltage ToU	44.52 peak, 40.43 off-peak sen/kWh	RM21.76/kW (peak MD)	RM23.06/kW (peak MD)	RM250/month

AFA is added per kWh on top of every tariff. TNB's notes apply the 1.6% Renewable Energy Fund (KWTBB) to all non-domestic accounts; the 8% service tax is listed for domestic accounts above 600 kWh.

The key difference: on low voltage, capacity and network are charged on every kWh, so the bill rises in a straight line with usage. On medium and high voltage they are charged on maximum demand, so a plant with a steady 24-hour load pays a much lower average rate than one that runs a few hours with big peaks.

Low, medium or high voltage: which is your factory on?

TNB defines low voltage as above 50V up to 1kV, medium voltage as above 1kV up to 50kV, and high voltage as above 50kV up to 230kV. In practice the supply voltage is set by your maximum demand. TNB's Electricity Supply Application Handbook sets these minimum supply schemes:

Maximum demand	Supply voltage	Typical arrangement
12 kVA to 100 kVA	400V three phase	Service from the existing LV network
100 kVA to 350 kVA	400V	Underground cable from a feeder pillar or substation
350 kVA to 1,000 kVA	400V	Direct cable from a new substation
1,000 kVA to under 5,000 kVA	11kV	Fed from a TNB 11kV switching station, land may be needed
5,000 kVA to 25,000 kVA	33kV	Fed from a TNB 33kV switching station, land may be needed
25,000 kVA to under 100,000 kVA	132kV or 275kV	Fed from a TNB transmission substation

So most link, cluster and semi-detached factories sit on low voltage, and a plant that needs more than about 1,000 kVA moves to 11kV. Our guide to TNB amperage for factories explains how amps relate to kVA, and the factory power calculator turns your machine list into an amperage estimate.

TNB maximum demand: how the MD charge works

TNB defines maximum demand (MD) as twice the largest number of kWh supplied in any 30 consecutive minutes in the month. In plain terms, it is your highest half-hour average load.

On the Medium Voltage General tariff, every kW of that peak costs RM89.27 for the month (RM29.43 capacity plus RM59.84 network), however briefly you hit it. If a compressor, oven and press line all start together and push MD up by 100 kW for one half hour, that half hour adds RM8,927 to the month's bill.

MD is also tied to your supply contract. Under TNB's terms of supply, an actual MD above the declared MD becomes the new declared MD. Under the Connected Load Charge, new MV and HV consumers recording less than 85% of their declared MD (years 1 to 4) or 75% (years 5 and 6) pay RM8.50 per kW of shortfall.

TNB ToU for factories: peak and off-peak hours

Day	Peak	Off-peak
Monday to Friday	2pm to 10pm	10pm to 2pm
Saturday and Sunday	None	All day
Selected public holidays	None	All day

The public holiday treatment is from TNB's 2 October 2026 statement. On the Medium and High Voltage ToU tariffs, capacity and network charges are billed only on the MD recorded during peak hours. Low voltage ToU is available to customers with a smart meter.

ToU is not automatically cheaper. Off-peak energy is 4.09 sen cheaper than peak on every voltage, but the MV ToU demand rate is RM97.06 per kW against RM89.27 on MV General. ToU pays when a large share of your units falls off-peak, or when you can keep the heaviest loads out of the 2pm to 10pm window so that peak MD falls.

MV General vs MV ToU: the same factory, October 2026 rates

Assume 200,000 kWh a month, MD of 600 kW on the General tariff, 40% of units in peak hours, and AFA at 3.61 sen/kWh.

Charge	MV General	MV ToU, peak MD 600 kW	MV ToU, peak MD cut to 500 kW
Energy	RM59,660	RM57,732	RM57,732
AFA	RM7,220	RM7,220	RM7,220
Capacity	RM17,658	RM18,114	RM15,095
Network	RM35,904	RM40,122	RM33,435
Retail	RM200	RM200	RM200
Total before KWTBB	RM120,642	RM123,388	RM113,682

The same factory pays RM2,746 more on ToU if its afternoon peak does not change, and RM6,960 less if it moves 100 kW of peak load into the evening or the weekend.

Automatic Fuel Adjustment (AFA) in 2026

AFA started in July 2025. TNB says customers received RM3.1 billion in AFA rebates before it turned into a surcharge in May 2026 as coal prices rose. The September 2026 rate was +3.67 sen/kWh. Single Buyer reports +3.61 sen/kWh for October 2026 and an outlook of +4.27 to +7.59 sen/kWh for November 2026 to January 2027.

For a factory, AFA is simple arithmetic: every 1 sen of AFA on 200,000 kWh is RM2,000 a month. The protection that exempts homes using up to 800 kWh a month from AFA until 31 December 2026 applies to domestic customers only, so industrial accounts pay the full rate.

How to read a factory TNB bill

Look for these lines on a non-domestic bill:

1. Tariff category: for example "Non-Domestic Medium Voltage ToU".
2. kWh: total units, split into peak and off-peak on ToU.
3. Maximum demand (kW): the half-hour peak that drives capacity and network charges on MV and HV.
4. Energy, AFA, capacity, network and retail charges.
5. KWTBB 1.6%: the Renewable Energy Fund contribution.
6. Power factor surcharge: appears when power factor falls below 0.85 (0.90 for supply at 132kV and above).
7. Connected Load Charge: appears when MD stays under the reference level during the CLC period.
8. Minimum monthly charge: TNB's terms allow a minimum charge when the bill falls below the amount set in the tariff, and a project minimum monthly charge of 2% of the net supply project cost in the first five years. Check the current amount with TNB.

Late payment carries a 1% surcharge on the outstanding amount.

Worked example: a small low voltage factory

A link factory using 20,000 kWh a month on the Low Voltage General tariff in October 2026:

Charge	Calculation	Amount
Energy	20,000 × 27.03 sen	RM5,406
Capacity	20,000 × 8.83 sen	RM1,766
Network	20,000 × 14.82 sen	RM2,964
AFA	20,000 × 3.61 sen	RM722
Retail	Fixed	RM20
Total before KWTBB		RM10,878

That is about 54.4 sen per kWh. On low voltage the levers are fewer kWh, a better power factor and, with a smart meter, ToU.

How to cut an industrial electricity bill

Keep maximum demand down

On MV and HV, MD is often the largest controllable cost. TNB suggests starting motors in stages and moving heavy work off-peak. A demand controller that briefly sheds chillers or compressors stops one half hour from setting the month's MD.

Correct your power factor

Below 0.85, TNB adds 1.5% of the energy, demand and AFA charges for every 0.01 shortfall, and 3% for every 0.01 below 0.75. A factory with the RM120,442 of charges in the MV General example and a power factor of 0.80 pays a 7.5% surcharge, about RM9,033 that month. A capacitor bank sized by a registered electrical engineer usually fixes this, and the bill shows whether it is needed.

Move to ToU only if you can shift load

Run the comparison above with your own figures. Night-shift and weekend operations tend to gain; a single 8am to 5pm shift puts three working hours into the peak window.

Rooftop solar under Solar ATAP

Solar ATAP replaced net energy metering from 1 January 2026. A non-domestic consumer can install up to 100% of its maximum demand (the average of the past 12 months), capped at 1,000 kW. Solar power used on site cuts kWh, and with it the energy charge and AFA. Exports are credited at the average System Marginal Price, only within the same billing period, and the credit cannot offset AFA. The arrangement runs for up to ten years, and applications go through a SEDA registered PV service provider. On MV and HV, solar does not guarantee a lower MD, since a cloudy half hour can still set it. Our note on rooftop solar for factories in Klang and Shah Alam covers the rent-or-buy side.

Choose the right supply voltage and declared MD

Supply voltage follows your MD band, so the real choice is made when you pick a building. Steady, high loads suit medium voltage, where each extra kWh costs 29.83 sen rather than 50.68 sen; short, high peaks are expensive there. Declare an MD you will actually reach.

What tenants and buyers should check

Before signing, ask for:

• 12 months of TNB bills showing tariff category, kWh, MD and power factor
• Supply voltage and approved or declared MD (the TNB supply approval letter or contract)
• Meter type: a smart meter is needed for low voltage ToU
• Whether the previous occupier is still inside a Connected Load Charge period. If you declare a higher MD at change of tenancy, a new six-year CLC period starts
• Condition and ownership of the substation, transformer and capacitor bank on MV sites
• Any rooftop solar on the property and who holds the ATAP or NEM contract
• A clean change of tenancy: the registered account holder is liable for every bill on the account, and TNB asks for a deposit of about two months' estimated charges

If your process needs more power than a typical unit carries, filter for it from the start. Our high-power factory service in Selangor shortlists units by confirmed supply, and you can browse high-power factories for rent in Selangor or high-power factories for sale in Port Klang. For ceiling height, floor loading and land as well as power, see how to find a factory by technical specs and the factory requirements by industry pages. If you would rather hand over the brief, use find me a factory.

If your load is heading past what a low-voltage supply can carry, read our TNB substation guide for factories: when you need one, compact vs indoor substations, the land TNB needs and the connection charges.

Thinking about panels on the roof? Our Solar ATAP rooftop solar guide for factories covers self-consumption rules, roof checks and landlord consent.

FAQ

What is the TNB tariff for factories in 2026?

Low Voltage General is 50.68 sen/kWh (energy, capacity and network) plus RM20 a month. Medium Voltage General is 29.83 sen/kWh plus RM89.27 per kW of maximum demand and RM200 a month. AFA, +3.61 sen/kWh in October 2026, is added to both.

What are TNB ToU peak hours for industrial users?

Peak is 2pm to 10pm, Monday to Friday. Other weekday hours, weekends and selected public holidays are off-peak, and on MV and HV ToU, maximum demand recorded off-peak is not charged.

How is the TNB maximum demand charge calculated?

MD is twice the largest kWh used in any 30 consecutive minutes in the month, which is your highest half-hour average kW. On MV General you pay RM89.27 for each kW of it every month. On MV ToU only the peak-period MD is charged, at RM97.06 per kW.

Is AFA charged to factories in 2026?

Yes. AFA applies per kWh to all non-domestic accounts and was +3.61 sen/kWh in October 2026. The 800 kWh exemption announced in September 2026 covers homes only.

Does a low power factor increase my TNB bill?

Yes. Below 132kV, a power factor under 0.85 adds 1.5% of the energy, demand and AFA charges for every 0.01 shortfall, and 3% per 0.01 below 0.75. A capacitor bank usually solves it.

Is medium voltage supply cheaper than low voltage?

Per kWh, yes: 29.83 sen against 50.68 sen. But medium voltage adds RM89.27 per kW of MD each month, so it suits plants with steady, long-running loads. Supply voltage is set by your maximum demand, with loads above about 1,000 kVA normally fed at 11kV.

Can rooftop solar cut a factory's TNB bill under Solar ATAP?

Yes, mainly through self-consumption, which cuts kWh, energy charges and AFA. Non-domestic systems can be up to 100% of MD, capped at 1,000 kW, and exports earn the average System Marginal Price within the same billing period.

Buying or renting, talk to us

FactoryHub is the industrial-only platform of Peter Tan (REN 12771) and Jason Low (PEA 1478), registered with BOVAEP under CID Realtors Sdn Bhd E(1) 1855. We handle both rent and sale, and we co-broke across the whole market, so if the right unit is another agent's listing we will still put it in front of you.

Send us the numbers that decide the shortlist: required amps, built-up area, floor loading, preferred area and target date. We reply with what actually exists, including units that are not advertised publicly. For 800A to 4,000A+ requirements, see high-power factories in Selangor.

Agent	Licence	Mobile / WhatsApp	WeChat
Peter Tan	REN 12771	+6016-666 6872	peterindustrial
Jason Low	PEA 1478	+6012-288 1834	massiveaction

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