---
title: "Landlord Sub-Meter Electricity Installation & Billing Guide Malaysia 2026"
description: "How room landlords meter and bill air-con electricity under the 2025 TNB tariff: about 44 sen/kWh, wireman setup, prepaid vs manual meters, legal limits."
datePublished: "2026-07-28"
dateModified: "2026-07-28"
canonical: "https://www.superhomes.my/resources/landlord-submeter-installation-billing-malaysia"
---

# Landlord Sub-Meter Electricity Installation & Billing Guide Malaysia 2026

A landlord can put a sub-meter on each rented room and bill the tenant for the electricity that room uses, as long as the rate and billing method are written into the tenancy agreement and the rate passes on the landlord's actual TNB cost rather than adding a hidden profit. Under the TNB domestic tariff in force since 1 July 2025, that cost is about 44 sen per kWh for a home using 600 kWh or less a month, before fuel adjustments. A licensed electrician should install the meter.

Air-conditioning is the biggest variable cost in a room rental. If every room's usage is folded into a flat rent, one heavy user can wipe out the landlord's margin, and the light users subsidise them. Sub-meters solve that, but they also create one of the most common rental arguments in Malaysia: "Why am I paying more per kWh than TNB charges?" This guide covers the current tariff, how to set a fair rate, meter types and costs, installation rules and a contract clause.

## The TNB Domestic Tariff Since 1 July 2025

TNB replaced the old tiered domestic tariff (the "first 200 kWh at 21.8 sen" bands many older guides still quote) with a component tariff from 1 July 2025:

| Component | Rate | Notes |
| --- | --- | --- |
| Energy charge | 27.03 sen/kWh | 37.03 sen/kWh if the account uses over 1,500 kWh in the month |
| Capacity charge | 4.55 sen/kWh | |
| Network charge | 12.85 sen/kWh | |
| Retail charge | RM10/month | Waived if usage is 600 kWh or less |
| Automatic Fuel Adjustment (AFA) | Varies monthly | Can be a surcharge or a rebate |
| Energy efficiency incentive | Rebate | For accounts using 1,000 kWh or less |

(Source: TNB tariff announcement for the base tariff from 1 July 2025, as reported by national media; energy 27.03/37.03 sen, capacity 4.55 sen, network 12.85 sen, RM10 retail charge waived at 600 kWh or below; checked 5 Oct 2026.)

So the base cost is 27.03 + 4.55 + 12.85 = **44.43 sen/kWh** for an account using up to 1,500 kWh, before AFA, the efficiency rebate and any service tax that applies to higher usage. A typical whole-unit room rental with four air-conditioned rooms often lands in the 600 to 1,500 kWh band, so the RM10 retail charge applies but the higher energy rate does not.

The honest way to price a room is from the master bill itself: divide the total bill (after rebates and AFA) by the total kWh on that bill to get your effective rate for the month.

## Is It Legal to Charge Tenants More Than TNB?

The Electricity Supply Act 1990 says that, subject to exemptions, no one other than a supply authority may supply electricity to another person except under a licence (section 9). A landlord recovering the actual cost of electricity a tenant used, under a tenancy agreement, is generally treated as cost-sharing, not running a supply business. Adding a markup so the room rate exceeds the bill starts to look like selling electricity. (Source: Electricity Supply Act 1990 [Act 447], section 9(1); checked 5 Oct 2026.)

We could not find a Suruhanjaya Tenaga rule, guideline or circular that fixes a maximum rate for landlord sub-metering for this update, so there is no official "allowed markup". The defensible position is:

1. Charge the effective TNB rate from the master bill, recalculated monthly or at least quarterly.
2. If you want to recover meter hardware, prepaid platform fees or common-area power, show it as a separate, fixed, disclosed charge in the agreement, not hidden inside the kWh rate.
3. Give the tenant the meter reading and the master bill on request.

Flat rates of 50 to 70 sen/kWh were common under the old tariff. At today's roughly 44 sen base, a 60 sen rate is about 35% above cost; disclose it as such or bring it down.

## Worked Example: A Four-Room Unit

A landlord in [Setapak](/area/kuala-lumpur/setapak) rents four rooms in a condo. The monthly master bill shows 1,100 kWh and comes to RM498.73 after the RM10 retail charge (we leave AFA at zero to keep the numbers clear).

| Item | Figure |
| --- | --- |
| Master bill total (1,100 x RM0.4443 + RM10) | RM498.73 |
| Total kWh on bill | 1,100 kWh |
| Effective rate (RM498.73 / 1,100) | **45.34 sen/kWh** |
| Room A sub-meter reading | 260 kWh |
| Room A bill at effective rate | 260 x RM0.4534 = **RM117.88** |
| Same room at a flat 60 sen | RM156.00 (+RM38.12) |

The 1,100 kWh includes the common areas: fridge, water heater, hallway lights and router. If the four rooms metered 820 kWh between them, 280 kWh is shared. Either include common power in the rent or split it equally and say so in writing; do not quietly load it into the room rate.

## Choosing a Sub-Meter

| Type | Indicative cost per room, installed | How billing works | Best for |
| --- | --- | --- | --- |
| Manual digital kWh meter (DIN rail) | Roughly RM150 to RM300 | Landlord reads monthly and invoices | Long-stay rooms, small landlords |
| Smart Wi-Fi meter with app | Roughly RM250 to RM450 | App logs usage and can issue bills | Landlords managing several units |
| Prepaid meter (card or e-wallet top-up) | Roughly RM350 to RM650 plus platform fees | Tenant tops up; power to the circuit stops at zero | High turnover, student lets, co-living |

These are indicative 2026 market prices from installer and marketplace listings, not regulated figures; get two quotes.

**Meter quality matters.** Use a meter with a recognised accuracy class (Class 1 is common) and a sealed, tamper-evident enclosure. If a tenant disputes a bill, an accurate, readable meter is your evidence.

**Prepaid cut-offs.** A prepaid meter that cuts only the air-conditioner circuit is a good middle ground. Cutting all power to a room, including lights and sockets, at midnight invites complaints; most systems send low-balance alerts so the tenant can top up first.

## Installation and Safety

- **Use a registered electrician.** Wiring work must be done by a competent person registered with Suruhanjaya Tenaga under the Electricity Regulations 1994. A sub-meter goes in the distribution board or on a dedicated air-conditioner circuit; poor work causes overheating and tripping.
- **Do not touch TNB's meter.** The utility meter and its seals belong to TNB. Interfering with them is an offence under the Electricity Supply Act 1990, and the registered account holder carries the risk if a tenant tampers with it.
- **Strata units.** In a condo, check whether the management office or house rules require notice for electrical work in the unit. It is usually inside your unit's board, but a short notice avoids access disputes.
- **Fire safety.** Overloaded multi-plugs in rooms are a bigger fire risk than the sub-meter itself. Set a house rule on heaters and cooking appliances in rooms.

## Handling Disputes Over Readings

Most sub-meter arguments are about trust, not money. Photograph each meter on the same day each month and send the photos with the invoice. Keep a simple spreadsheet of readings, the master bill and the rate you used. If a tenant thinks their meter is wrong, swap the meter or test it against a plug-in energy monitor for a week. Refund any overcharge promptly; a few ringgit returned early is cheaper than a small claims hearing.

## Contract Clause

Put the rate, reading and payment method in the tenancy agreement. A simple version:

> "Electricity used in the Room is measured by a sub-meter. The Tenant shall pay for it at the effective rate per kWh shown on the TNB bill for the same month (total bill divided by total kWh), invoiced with a copy of the TNB bill and the sub-meter readings, payable within 7 days. Common-area electricity is included in the rent."

If you charge a fixed rate instead, state the rate, say it will be reviewed when TNB changes its tariff, and say whether it includes any fee. If you are buying a unit to rent by the room, run the numbers on a few [rental listings in Kuala Lumpur](/rent) or [units near universities in Shah Alam](/area/selangor/shah-alam) with electricity treated as a pass-through, not a profit line.

For a broader view of who holds the TNB account and how deposits work, see [transferring utility bills between landlord and tenant](/resources/utility-bill-transfer-landlord-tenant-malaysia). For unpaid sub-meter bills after a tenant leaves, see [small claims for rental disputes](/resources/landlord-tenant-dispute-small-claims-court-malaysia).

## FAQs

### Q: What is a fair sub-meter rate per kWh in Malaysia in 2026?

The landlord's actual effective TNB rate, which for most room rentals is roughly 44 to 47 sen/kWh before fuel adjustments under the tariff in force since 1 July 2025. Work it out each month by dividing the total master bill by the total kWh on it.

### Q: Can a landlord charge 60 or 70 sen per kWh?

There is no published Suruhanjaya Tenaga cap for landlord sub-metering, but a rate well above the TNB bill looks like selling electricity, which the Electricity Supply Act 1990 reserves to licensed suppliers. If you charge a fixed rate above cost, disclose it in writing before the tenant signs, and expect challenges.

### Q: How much electricity does a 1 HP air-conditioner use per night?

A 1 HP inverter unit running 8 hours at a moderate setting often uses about 3 to 5 kWh, so about RM1.35 to RM2.25 a night at 45 sen/kWh. Older non-inverter units can use noticeably more.

### Q: Who should install a room sub-meter?

A competent electrician registered with Suruhanjaya Tenaga. Do not let a handyman wire it into the distribution board, and never touch TNB's own meter or its seals.

### Q: Is a prepaid sub-meter better than a manual one?

For short stays and student rooms, usually yes: there is no unpaid bill at the end. For long-stay tenants, a manual or smart meter with a monthly invoice is cheaper and causes fewer late-night cut-offs.

### Q: Does the RM10 retail charge apply to room rentals?

It applies to the TNB account, not the room. It is waived when the account uses 600 kWh or less in a month. Most multi-room units with air-conditioning use more, so it usually applies and is spread across the effective rate.

### Q: What if a tenant refuses to pay the sub-meter bill?

Send the readings and the TNB bill, then deduct from the utility deposit if the agreement allows. If more is owed, an individual landlord can claim it through the small claims procedure for amounts up to RM5,000.

### Q: Can I use a sub-meter for a whole-unit tenant?

There is no need. A whole-unit tenant should simply pay the TNB bill directly or have the account transferred to them.

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Tariff figures change. Check TNB's current tariff page and your latest bill before setting or reviewing a rate.