Consumer Category

The determination of Connection Charge (CC) are categorized based on the supply voltage level.

Type of Consumers

Low Voltage
(< 1kV)
Medium Voltage
(1kV ≤ V ≤ 50kV)
High Voltage
230V 6.6kV 132kV
400V 11kV 275kV


Prior receiving electricity (pre-supply), consumer is subjected to connection charges based on voltage level as below:

Low Voltage

  1. Load Charge (based on declared Maximum Demand)
  2. Additional Cable Charge (if any)
  3. Special Request by Consumer and/ or Third Party Requirements/Charges (if any)

Medium Voltage

  1. Maximum Demand Charge (Load Charge)

  2. Additional Cable Charge

  3. Special Request by Consumer and/ or Third Party Requirements/Charges (if any)

High Voltage Consumer

  1. Connection Charges based on 1st Principle calculation or Refundable Connection Charges (RCC)

  2. Premium for project implement under Fast Track Supply

  3. Liquidated Delay Damages (LDD)

  4. Special Request by Consumer and/ or Third Party Requirements/Charges (if any)


Upon commissioning, consumer is subjected to charges (if applicable) as below:

Medium Voltage

  1. Connected Load Charge

  2. Liquidated Damages

High Voltage

  1. Connected Load Charge

  2. Project Minimum Monthly Charge

  3. Liquidated Damages

The detailing of each charges can be referred at DETAILS CHARGES below.


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Other Consumer Category

For consumers / developers from other categories, the CSP principle is based on the project cost.

Other Type of Consumers

No Consumer Categories General Description Connection Charge Principle
1 Co-generator A generator who uses a single primary energy source to sequentially generate two different forms of useful energy for its own use.
  • Full Project Cost
2 Public Distribution Licensee (PDL) Owner/developer who obtained license from Suruhanjaya Tenaga to carry out duty as electricity supply distribution operator to consumers in its distribution area  (franchise area). Electricity supply from TNB is taken in bulk from single point metering   at any voltage level depending on maximum demand.
  • Full Project Cost
3 Temporary supply (e.g. for construction/fun fare/circus/expo sites) Electricity supply required for a non-permanent installation intended for a limited time. The Connection Charge amount however shall be refunded based on the Net Book Value amount of the returned installations after the Temporary Supply has been dismantled (if applicable).
  • For drop service without pole –Schedule 1 (1 and 3 phase)
  • Other scenario - Full Project Cost including dismantling cost
4 Street lighting and Neon & Floodlight Lighting up public roads, highways and bridges excluding tolled roads and highways.
  • Full Project Cost
  • The standard rate applies for TNB pole and lantern installations.

Refer DETAILS CHARGES for more information. 

5 Infrastructure Area Development (IAD) IAD is an option for Developer who requesting supply to green field area with no specific consumers identified yet.
  • 50% Project Cost
  • Within 5 years of supply given, full amount of CC paid will be reimbursed if the total MD declared from the Individual Consumers is equal to or more than   25% of the installed capacity for the IAD project.
  • A proportionate amount is refunded if the total MD declared is less than 25% of installed capacity.


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Details Charges

Check here for the details charges.

Details Charges

Maximum Demand Charge

  • The connection charge depends on Maximum Demand declared by the consumer.

i. For Low Voltage consumer, the charges is as per Schedule 1.

ii. For Medium Voltage consumer, Connection charge per kilowatt Maximum Demand (kW MD) is applicable where the connection charge is RM 45/kW MD.

a. This is only applicable for request of supply source not more than 6 km away from the nearest available supply (that could meet the requested load demand).

b. Should the nearest available supply source unable to meet the requested load, the supply may have to be drawn from the nearest substation. In this case, the connection charge still applies as long as the distance does not exceed 6 km.

iii. In the event, land, plinth or substation building are transferred or leased to TNB at a nominal price of RM 10 or no new substation needed. The requirements and specifications are as stated in the TNB Electricity Supply Application Handbook (ESAH).

  • In the event that disagreement arises between the land owner and TNB, then the land cost of any land will be determined in the manner as stipulated in the provisions under the Electricity Supply Act 1990. 

Additional Cable Charge

Should the distance for supplying electricity exceed 6 km from the nearest substation, consumer is subjected to additional cable charge for distance exceeding more than 6km. For each supply voltage, method to determine the additional cable charge are as below:

11kV Supply
  • The consumer will only pay for the cable size as per declared load even though a larger cable may be laid by TNB to meet the demand of other consumers.  The standard rate is based on 11kV cable size as shown in Schedule 2,
33kV Supply
  • Additional cable charge is determined based on proportional MD declared. The charges applied are as per MD range as detailed in Schedule 2(a).

Connection Charges based on 1st Principle calculation

The basis of the charges is that the consumer has to make up for the shortfall in the return on the capital invested by TNB (herein after defined as “Project Cost”), at internal rate of return (IRR) approved by the Government and secured through the revenue earned from the sales of electricity to the consumer for a 15 year period of supply.

IRR is the Weighted Average Cost of Capital (WACC) approved by the Government under the Incentive-based Regulation (IBR) regime.

The formula for the connection charge is given as below:

Revenue – Running Cost = Annuity Amount
Present Value Future Cash Flow = Annuity Amount times by PVIFAWACC


PVIFA - Present Value Interest Factor of an Annuity; and
WACC - Weighted Average Cost of Capital

Connection Charges is payable if Present Value Future Cash Flow < Project Cost

If the return falls short of the annual return required (Present Value Future Cash Flow is less than Project Costs), then a connection charge is levied by an amount so that the resultant investment by TNB is reduced to such an extent that the required return is achieved.

Under this principle, the capital invested by TNB of the project attributable to the consumer (Project Cost) is dependent on the nature of the supply based on the following criteria:

  • If the supply is fully dedicated to the consumer, full project cost will be imposed to determine as the baseline to identify if Present Value Future Cash Flow is greater or less than the project costs; or

  • If the supply is non-dedicated to the consumer or will be part of TNB’s transmission network, Project Cost will be apportion depending to the requested Maximum Demand of the consumer and the carrying capacity of the transmission line.

Refundable Connection Charges (RCC)

Based on principle mentioned under 1st Principle calculation where consumer is not subjected to connection charges if Present Value Future Cash Flow is greater than Project Cost, consumer is subjected to Refundable Connection Charges (RCC) which is equivalent to 25% from the Project Cost.

RCC = 25% x Project Cost

Consumer is required to achieve 75% from its declared Maximum Demand within:

  • Six (6) years upon the new supply is commissioned for the new consumer; or

  • Five (5) years upon the upgraded supply is commissioned for existing consumer who required the additional load with system upgrading.

If the consumer fails to achieve 75% from its Maximum Demand within time mentioned above, TNB will forfeit or claim the RCC.

Premium for Project under Fast Track Supply

Consumer may request and TNB may consider, a scheme of supply which is earlier than the date of supply to be made available by TNB in accordance with its current process of providing supply of electricity (herein after defined as “Fast Track Supply”).

Apart from connection charge 1st Principle, consumer under Fast Track Supply is subjected to premium charge based on the following project timeline:

Level Project Timeline (Months) Premium (% from Project Cost)
1 0 – 12 15
2 13 – 18 10
3 19 – 24 5

Liquidated Delay Damages (LDD)

For project implement under Fast Track Supply, consumer and TNB is subjected to LDD. Non defaulting party can claim DD to the other party who fails to deliver supply or take supply on the agreed date. Calculation for LDD are as below:

LDD = 15% x project cost x nd


nd - number of days delay from the committed date of supply (agreed by both parties)

Project Minimum Monthly Charge (PMMC)

Consumer is subjected to PMMC, a fixed monthly charge equivalent to two per cent (2%) of the difference between the Project Cost and the Connection Charge. PMMC is payable on monthly basis  for a maximum period of up to five (5) years from the supply at High Voltage is commissioned.

PMMC = 2% x (P - C)


P - Project Cost
C - Connection charges based on 1st Principle
(P – C) - Net Capital Cost of the project

Special Request by Consumer and/ or Third Party Requirements/Charge

  • Any request for additional or special request out of normal/standard TNB specification, e.g special request for an additional feeder by consumer or any requirements  from third party such as Local Authority or Government Agencies, the consumer will be required to pay the full cost of the additional request.

  • Example of Special Request by Consumer and/ or Third Party Requirements/Charge  are as in Schedule 3(a).

  • Request for additional service cable 11kV and single phase underground service cable is subjected to standardized charges as per Schedule 3(b).

Connected Load Charge (CLC)

CLC is subjected to consumer who take supply at Medium Voltage (MV) and High Voltage (HV). Consumer will be charge RM8.50/kW for every kW shortfall between the Actual Maximum Demand recorded compared to the Reference Maximum Demand and subjected to prevailing changes from time to time. The period of CLC is determined based on type of consumer as below:

  • For new consumer who applies for a supply in new premise or existing premise which require new electrical infrastructure including meter installation, and existing Low Voltage consumer who applies for supply upgrade to MV or HV system, consumer is subjected to CLC for a period of 6 years.

  • While for existing MV or HV consumer who applies for an additional load and/or voltage upgrade will be subjected to CLC for 5 years.

Please find the details of CLC information here.

Liquidated Damages (LD)

LD is applicable for consumers who fail or cease to take supply for 5 years after supply has been connected. The basis of calculating the quantum of LD is as follows:

  • For each month of the 5 year period the consumer shall pay 1/120 of the Net Capital Cost of the project. In general, LD is calculated according to the formula:

LD = 1/120 x Net Capital Project Cost x (60-n)

     = (60 - n) x (P-C)


P – Total capital cost of the project
C – Connection charge paid by the consumer
(P-C) – Net Capital Cost of the project
n – number of months that have lapsed after supply is given

Street lighting and Neon & Floodlight

Category Detail Charge
HPSV Lantern

For work scopes involving installation of lantern and/or planting of new poles and service line :-

i. RM 300 / lantern (for each additional lantern)

ii. RM 600 / pole (for each additional pole and service line)

(If require new Low Voltage and Medium Voltage infrastructure development, related cost will be borne by consumer)

LED / Neon / Floodlight Full Project Cost


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Other Charges

Click for the details of other charges.

Reconnection Fee

For consumer who request supply to an existing premises where TNB's infrastructure is still in good condition, a reconnection fee will be charged based on voltage level as in the table below:

No Consumer Category (Voltage Level) Reconnection Fee (RM)
i.  Low Voltage 3.00
ii. Medium & High Voltage 80.00

Should the existing TNB infrastructure is not in good condition and requires TNB to build new infra, the standard Connection Charge will be charged to the consumer in accordance with the current policy.

Administration Fee

In the event consumer request to cancel the supply application prior to construction works by TNB, consumer is subjected to administration fee based on voltage which the amount will be deducted from the total CC paid. The remaining balance will be refunded to the consumer.

No Consumer Category (Voltage Level) Reconnection Fee (RM)
i.  Low & Medium Voltage 10% of the paid connection charges with a maximum limit of RM5,000
ii. High Voltage RM50,000


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