How Does Time of Use (ToU) Electricity Pricing Work?

Under the domestic ToU scheme, the Energy Charge is calculated using different rates for electricity consumed during peak and off-peak periods.

In Peninsular Malaysia, electricity used during off-peak hours has a lower Energy Charge, while electricity used during peak hours has a higher one. For households, the idea is simple: if you can move some electricity use away from busy weekday hours, you may be able to lower the Energy Charge portion of your bill.

TNB's current ToU scheme has two time periods: Peak and Off-Peak.

Starting 1 July 2025, ToU was expanded to include Domestic and Non-Domestic Low Voltage customers with smart meters. According to TNB, "all customers with the General Tariff may consider switching to the ToU Tariff".

It's important to note that TOU is an opt-in scheme. Your current account stays on the standard tariff unless you actively apply to switch.

What are the current ToU peak and off-peak hours?

Peak hours are from 2pm to 10pm, Monday to Friday. Most other hours are off-peak.

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

In other words, on weekdays, electricity is cheaper under ToU before 2pm and after 10pm. Saturdays, Sundays, and selected designated public holidays are off-peak for the entire day.

How are electricity rates different under ToU?

The Energy Charge is lower during off-peak hours and higher during peak hours.

For Domestic customers under the current tariff:

Monthly use	Peak Energy Charge	Off-Peak Energy Charge
1,500 kWh and below	28.52 sen/kWh	24.43 sen/kWh
Above 1,500 kWh	38.52 sen/kWh	34.43 sen/kWh

For comparison, the Domestic General Tariff Energy Charge is 27.03 sen/kWh for 1,500 kWh and below, and 37.03 sen/kWh above 1,500 kWh.

So ToU does not simply give you a cheaper electricity rate all day.

You pay less during off-peak hours, but more during peak hours.

The 1,500 kWh figures refer to the applicable domestic consumption categories in the tariff schedule. They should not automatically be interpreted as meaning that the entire monthly consumption is charged at the higher rate once usage exceeds 1,500 kWh.

How does ToU work in everyday life?

ToU rewards households that can shift some electricity use outside the 2pm–10pm weekday peak period.

Imagine you normally use a washing machine and dryer at 8pm on a weekday.

Under ToU, that electricity falls within the higher-priced peak period.

If those appliances can instead be used at 11pm, in the morning, or during the weekend, that electricity falls within the lower-priced off-peak period.

The same idea can apply to flexible activities such as:

• doing laundry;
• running a dishwasher;
• charging an electric vehicle;
• using certain water-heating systems; or
• scheduling other high-consumption appliances.

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You do not need to stop using electricity during peak hours. The aim is to move usage that is practical to shift.

Is ToU automatically cheaper than the normal tariff?

No. ToU can save money only if your usage pattern works in your favour.

A household that uses a large amount of electricity between 2pm and 10pm on weekdays could end up paying a higher Energy Charge under ToU.

A household that uses more electricity:

• in the morning;
• late at night;
• on Saturdays;
• on Sundays; or
• on the designated public holidays

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has more opportunity to benefit from the off-peak rate.

TNB therefore advises customers to consider their existing usage pattern and ability to move consumption into off-peak hours before choosing ToU.

What is a simple example of ToU savings?

The easiest way to understand ToU is to compare the timing of the same electricity use.

Suppose an appliance uses 10 kWh.

For a Domestic customer using 1,500 kWh or less:

10 kWh used during peak hours:
10 × 28.52 sen = RM2.852

10 kWh used during off-peak hours:
10 × 24.43 sen = RM2.443

The difference is about 41 sen for that 10 kWh.

That may look small for one appliance session. But if a household repeatedly shifts larger loads to off-peak hours throughout the month, the difference can accumulate.

This example covers the Energy Charge only, not the entire electricity bill.

Does ToU change every part of my electricity bill?

No. ToU primarily changes how the Energy Charge is calculated according to when electricity is used.

Other components of the bill still have their own rates and rules.

ToU primarily changes the Energy Charge according to the timing of consumption. Other charges, such as Capacity, Network, and Retail Charges, are calculated under their own applicable rules. The AFA is a separate monthly adjustment reflecting changes in generation-related costs, while taxes, rebates, incentives, and exemptions may apply according to the relevant conditions.

Why are peak-hour rates higher?

Peak pricing reflects periods when electricity demand on the system is higher.

TNB describes ToU as a way to encourage customers to move flexible electricity use to periods when system demand is lower.

This is also why the current off-peak window is relatively long. Suruhanjaya Tenaga says the revised ToU periods were designed to better reflect current electricity-system demand, with off-peak periods extended to weekends and longer weekday hours.

Why does ToU require a smart meter?

A smart meter is needed because TNB must know when electricity was used, not just how much was used in total.

Under a normal tariff, the total monthly kWh is enough to calculate the Energy Charge.

Under ToU, TNB needs to separate your consumption into:

Peak kWh + Off-Peak kWh

An activated smart meter records electricity use by time period, allowing the two rates to be applied correctly. TNB states that an activated smart meter is required before the ToU tariff can take effect.

Nevertheless, a household is not generally charged under ToU simply because it has a smart meter. It must first switch to the ToU tariff through the applicable TNB process and satisfy the relevant meter and account requirements.

Who is ToU most likely to suit?

ToU is more relevant to households that have meaningful electricity use outside weekday peak hours and enough flexibility to shift some usage.

For example, it may be worth examining if:

• you charge an EV overnight;
• you do most laundry on weekends;
• someone is home and uses more electricity before 2pm;
• you can move flexible appliance use to after 10pm; or
• much of your consumption already happens on weekends.

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But the question of whether ToU will actually save a particular household money depends on its real usage pattern.

The most useful first step is therefore not changing your routine immediately. It is understanding when you currently use electricity.

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FAQ

What does ToU mean on a TNB electricity bill?

ToU means Time of Use. Your Energy Charge is calculated using different rates for electricity consumed during peak and off-peak periods.

What time is electricity cheaper under TNB ToU?

For the current Domestic ToU tariff, off-peak hours are before 2pm and after 10pm from Monday to Friday, plus the whole day on Saturdays, Sundays, and selected designated public holidays.

What are TNB's peak hours?

Peak hours are 2pm to 10pm from Monday to Friday.

Is electricity cheaper all weekend under ToU?

Yes. Under the current ToU schedule, Saturday and Sunday are off-peak for the full 24 hours.

Will ToU definitely reduce my electricity bill?

No. Savings depend on when you use electricity. Heavy weekday consumption between 2pm and 10pm may reduce or eliminate the benefit of the lower off-peak rate.

Do I need a smart meter for ToU?

Yes. ToU requires an activated time-capable meter, such as a smart meter, because TNB must separate electricity use into peak and off-peak consumption. A standard meter that records only total monthly kWh cannot calculate the two time-based rates accurately. Customers should confirm meter availability and activation requirements with TNB before switching.

Is ToU the same as AFA?

No. ToU changes the Energy Charge according to when electricity is used. AFA is a monthly generation-cost adjustment. They are separate parts of the electricity pricing structure.

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Last updated: 5 October 2026

This article is sponsored by Tenaga Nasional Berhad.