TNB Tariff 2026 for a Factory in Rawang, Serendah or Shah Alam: Which Rate the Unit Puts You On and How to Estimate the Bill Before You Sign

Key Takeaways

• The tariff follows the supply the unit already has, not your trade. Since 1 July 2025 TNB groups business accounts by supply voltage: low voltage (above 50V up to 1kV), medium voltage (above 1kV up to 50kV) and high voltage. Old Tariff D became Non-Domestic Low Voltage, E1 became Medium Voltage General and E2 became Medium Voltage ToU (myTNB tariff page).
• Low voltage is charged per kWh only: 27.03 sen energy, 8.83 sen capacity and 14.82 sen network, 50.68 sen/kWh in all, plus RM20 a month. Medium voltage pays 29.83 sen/kWh plus RM29.43 capacity and RM59.84 network for every kW of maximum demand, plus RM200 a month.
• Above 1,000 kVA (850 kW) TNB requires medium voltage supply (TNB Connection Charges Book 2025), so the size of a factory's load usually decides its tariff.
• AFA is added to every kWh: +3.60 sen/kWh for November 2026, with an outlook of +6.23 to +7.98 sen/kWh for December 2026 to February 2027 (Single Buyer).
• Before a client signs, I ask for 12 months of TNB bills, then check the meter, the switchboard, the power factor and, on a medium voltage unit, whether a Connected Load Charge period is still running.

Which TNB tariff will my factory be on?

Clients often ask me whether a factory is on the "industrial" or the "commercial" rate. Since the restructuring that took effect on 1 July 2025, that is the wrong question: TNB now sets a business tariff by the voltage at which the premises takes supply (myTNB). A food plant and a furniture warehouse on the same supply pay the same rates.

Old code (before July 2025)	Tariff since 1 July 2025	How the bill is built
D (industrial) and B (commercial), low voltage	Non-Domestic Low Voltage General, or Low Voltage ToU	Every charge per kWh, no kW charge
E1 and C1, medium voltage	Non-Domestic Medium Voltage General	Energy per kWh, capacity and network per kW of maximum demand
E2 and C2, medium voltage peak/off-peak	Non-Domestic Medium Voltage ToU	Peak and off-peak energy, kW charges on peak-period demand only
E3 and C4, high voltage peak/off-peak	Non-Domestic High Voltage ToU	Same structure at high voltage rates

The size of the load decides the voltage. TNB's Connection Charges Book 2025 says loads above 1,000 kVA (850 kW) must take supply at medium voltage. Below that, a factory takes 400V three-phase supply and pays the low voltage tariff, even when TNB feeds it from a compact substation on its own lot (my compact substation guide covers when that is needed). A terrace or semi-D factory in Rawang or Serendah on 400V supply is therefore a low voltage account; a plant with its own high voltage switch room and transformers is a medium voltage one.

On a site visit I confirm it three ways:

1. The tariff line on the latest bill. It names the category directly.
2. The meter. A large low voltage supply is metered through current transformers, and TNB's connection charge table pairs each load band with a ratio, for example 800/5 for 361 to 480 kW and 1500/5 for 721 to 850 kW. The ratio is a quick clue to what the supply was sized for.
3. The switch room. A consumer high voltage switch room and transformer mean medium voltage, and with it a kW charge every month.

What does a factory pay per kWh and per kW in 2026?

These are the rates in TNB's schedule from 1 July 2025. They belong to the fourth regulatory period, which runs to December 2027 (Suruhanjaya Tenaga), so they hold through 2026 unless the government changes them. The average base tariff behind them is 45.40 sen/kWh (ST press release, 20 June 2025).

Tariff	Energy	Capacity	Network	Retail
Low Voltage General	27.03 sen/kWh	8.83 sen/kWh	14.82 sen/kWh	RM20 a month
Low Voltage ToU	28.52 peak, 24.43 off-peak sen/kWh	8.83 sen/kWh	14.82 sen/kWh	RM20 a month
Medium Voltage General	29.83 sen/kWh	RM29.43 per kW	RM59.84 per kW	RM200 a month
Medium Voltage ToU	31.32 peak, 27.23 off-peak sen/kWh	RM30.19 per peak kW	RM66.87 per peak kW	RM200 a month

On top of these come the monthly AFA on every kWh and 1.6% for the Renewable Energy Fund (KWTBB). TNB's tariff page lists the 8% service tax for domestic accounts above 600 kWh only, so it does not appear in the business formula.

The kW in the medium voltage rows is maximum demand. TNB counts a month's maximum demand as twice the highest number of kWh used in any 30 consecutive minutes (TNB). One bad half hour, such as every compressor starting together after a shutdown, sets the kW charge for the whole month.

How do I estimate a unit's TNB bill before signing?

TNB publishes the formula (myTNB). For low voltage: kWh x (energy + AFA + capacity + network) + retail. For medium voltage: kWh x (energy + AFA) + maximum demand x (capacity + network) + retail. The two examples below use round loads to show the arithmetic; they are not figures from any real unit.

A low voltage factory using 30,000 kWh a month: 30,000 x 50.68 sen = RM15,204, plus AFA at November's 3.60 sen = RM1,080, plus RM20, comes to RM16,304 before KWTBB. If AFA reaches the 7.98 sen in the outlook, the AFA line alone becomes RM2,394.

A medium voltage plant using 400,000 kWh with 1,000 kW maximum demand, on the General tariff:

Line	Working	RM
Energy	400,000 x 29.83 sen	119,320
AFA (November 2026)	400,000 x 3.60 sen	14,400
Capacity	1,000 kW x RM29.43	29,430
Network	1,000 kW x RM59.84	59,840
Retail		200
Total before KWTBB		223,190

The two kW lines are 40% of that bill, which is why I never estimate a medium voltage unit from kWh alone. From the previous occupant's bills I take the monthly kWh and maximum demand, then compare them with the client's machine list. FactoryHub's factory power calculator turns a machine list into kW and amps for that comparison.

Is the ToU tariff worth it for a factory?

Under ToU the peak period is 2pm to 10pm, Monday to Friday; the rest of each weekday and all of Saturday and Sunday are off-peak. For medium and high voltage accounts, maximum demand recorded in off-peak hours is not charged (myTNB). Low voltage ToU needs a smart meter. Switching is by application through the myTNB portal, a two-page form or a Kedai Tenaga. TNB charges RM10 stamp duty to switch and another RM10 to go back, and old E2 and C2 accounts moved to ToU automatically (TNB letter in The Star, 21 August 2025).

• Low voltage: capacity and network are the same either way, so only energy changes. The 30,000 kWh factory above, with 40% of its use falling between 2pm and 10pm on weekdays, would pay RM7,819.80 in energy on ToU instead of RM8,109, about RM289 a month less. ToU only loses when more than about 64% of the kWh falls in the peak window.
• Medium voltage: the kW decides it. For the 400,000 kWh plant with 40% peak use, ToU costs RM227,124 if its peak-period demand is still 1,000 kW, which is RM3,934 more than General. If start-ups and heavy batches move after 10pm and the peak-period demand stays at 800 kW, the bill is RM207,712, which is RM15,478 less. For that plant the break-even is about 960 kW.

What changes when you take over or upgrade a medium voltage factory?

This is the part tenants rarely hear about. TNB applies a Connected Load Charge (CLC) to medium and high voltage customers so they do not over-declare load (TNB charges and penalties):

• A new medium voltage customer is under CLC for six years from connection; a customer adding load or upgrading voltage, five years. A low voltage customer upgrading to medium voltage counts as new.
• CLC is RM8.50 for every kW by which the recorded maximum demand falls short of the reference: 85% of the declared demand in the early years, 75% in the last two.
• On a change of tenancy, if the previous occupant's CLC period has ended and you declare the same or a lower maximum demand, no CLC applies; declare more and a new six-year period starts. If the previous CLC period is still running, declaring either a lower or a higher figure also starts a new six-year period.

For an upgrade, TNB's load charge for a medium voltage connection is RM45 per kW of declared maximum demand, and its substation land terms apply (Connection Charges Book 2025). So even a client who plans to run less than the previous tenant needs the declared figure and the CLC dates from the landlord before signing.

Does a low power factor raise a factory's bill?

Yes. For supply below 132 kV, TNB adds 1.5% of the bill for every 0.01 that the power factor falls below 0.85, and 3% for every 0.01 below 0.75, on the kWh, kW and AFA charges (TNB). A factory at 0.80 pays 7.5% more. A working capacitor bank at the main switchboard is the usual fix, so I note whether one is there and whether recent bills show a power factor surcharge line.

What I ask the landlord about electricity before a client signs

1. Twelve months of TNB bills, showing the tariff, kWh, maximum demand, power factor and any CLC or surcharge line.
2. The main switchboard rating in amps and the CT ratio, set against the client's load.
3. Whether a smart meter is installed, if the client wants low voltage ToU.
4. On medium voltage: the declared maximum demand, when the CLC period ends, and who maintains the high voltage switchgear and transformers.
5. That the previous account will be closed and settled, and whose name the new account will be under. TNB says tenants have to agree this with the owner.

These sit alongside the approvals and fire checks in my checklist for renting a factory in Rawang. For high voltage rates and rooftop solar, see FactoryHub's TNB tariff 2026 guide. Current units, with their power supply where known, are on the factory pages, including those in Shah Alam.

WhatsApp Jason Low, Probationary Estate Agent PEA 1478 with CID Realtors Sdn Bhd, on +60 12-288 1834.