The TNB Power Factor Penalty is when TNB imposes a surcharge when your power factor is below a certain threshold.
If you are supplied with less or equal to 132kV, you will need to maintain a power factor of at least 0.85.
For power factor below 0.85, a 1.5% surcharge is added for every 0.01 decrease in power factor.
If the power factor falls below 0.75, the surcharge increases to 3% for every 0.01 decrease in power factor.
If you are supplied with more than 132kV, you will need to maintain a power factor of at least 0.9.