The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) rate for June 2026 has been set at +2.59 sen per kWh, which is up from in +1.38 sen/kWh in May 2026.
Similar to the case in May 2026, the true AFA is definitely 3.44 sen/kWh (RM 352 million) but Kumpulan Wang Industri Elektrik (KWIE) funds have covered 25% of the increased cost (i.e. RM87 million, comparable to 0.85 sen/kWh). That is the second month that AFA has been positive, and in addition the second month that KWIE has subsidised the AFA surcharge.
In accordance with Single Buyer’s website, fuel prices in June 2026 are higher than the baseline prices utilized in tariff setting, leading to an overall increase in generation costs. Coal price for June 2026 is recorded at 118.61 USD/MT (Base price: 97 USD/MT), while Tier 2 gas price for June is recorded higher than the Base price: 78.15 RM/mmBTU (Base price: 46 RM/mmBTU). AFA outlook from July to September 2026 is projected to range from +4.89 sen/kWh to +7.08 sen/kWh.
What’s Automatic Fuel Adjustment (AFA)?
AFA is a component of your electricity bill. To recap, AFA replaces the previous Imbalance Cost Pass-Through (ICPT) and is routinely calculated as either a surcharge or discount of as much as 3 sen/kWh depending on fuel prices – that is revised monthly, with any larger changes (beyond 3 sen) requiring cabinet approval.
Introduced as a part of the Electricity Tariff Restructuring that took effect from July 1, 2025, the AFA is one among five components or ‘charges’ used to calculate your electricity bill:
- Generation charge: 27.03 sen/kWh for total consumption of 1,500 kWh and below per thirty days or 37.03 sen/kWh for total consumption greater than 1,500 kWh per thirty days. This covers the actual cost of generating electricity from power plants.
- Capability charge: 4.55 sen/kWh. This covers the associated fee of maintaining sufficient electricity supply capability.
- Network charge: 12.85 sen/kWh. This covers the associated fee of operating and maintaining the grid and the local network to deliver electricity.
- Retail charge: RM10/month; waived for total consumption of 600 kWh and below a month. It is a fixed cost for metering, billing and customer support.
- AFA rate: +1.38 sen/kWh for the month of May 2026; waived for total consumption of 600 kWh and below a month.
You need to use our TNB Bill Calculator tool to get a rough estimate on how much your electricity bill shall be for the month. Essentially, if you happen to use over 1,500 kWh a month, you add the generation, capability and network charges (totalling 54.43 sen/kWh) to retail charge (RM10) and the AFA rate (-0.47 sen/kWh for April 2026; negative number, so it’s a reduction).
Alternatively, in case your usage is below 1,500 kWh a month, it’s 44.43 sen/kWh plus the retail charge and AFA rate. For total consumption of 600 kWh and below a month, it will only be 44.43 sen/kWh – retail and AFA charges are waived.
Here’s a listing of the monthly AFA rates up to now:
- July 2025: 0.00 sen/kWh
- August 2025: -1.45 sen/kWh
- September 2025: -1.10 sen/kWh
- October 2025: -6.50 sen/kWh
- November 2025: -8.91 sen/kWh
- December 2025: -6.42 sen/kWh
- January 2026: -4.99 sen/kWh
- February 2026: -2.77 sen/kWh
- March 2026: -2.15 sen/kWh
- April 2026: -0.47 sen/kWh
- May 2026: +1.38 sen/kWh
Domestic consumers who use lower than 1,000 kWh a month can enjoy a reduction called ‘Insentif Cekap Tenaga’ or ‘Energy Efficiency Incentive’. The discount provided is relative to consumption (higher usage, lower incentive), with the utmost discount being 25 sen/kWh.
Domestic users who’ve smart meters even have choice to enter the Time of Use (ToU) scheme, allowing them to alter their electricity usage patterns and reap the benefits of lower tariff rates during off-peak hours to enjoy savings on their monthly bill.
The scheme has two time zones, with off-peak timings being from 10pm to 2pm from Monday to Friday and throughout the day (24 hours) for weekends. Peak hours are from 2pm to 10pm on weekdays. Listed below are the energy charges under this scheme:
For usage of 1,500 kWh and below per thirty days
- Peak tariff: 28.52 sen per kWh
- Off-peak tariff: 24.43 sen per kWh
For usage above 1,500 kWh per thirty days
- Peak tariff: 38.52 sen per kWh
- Off-peak tariff: 34.43 sen per kWh
Is there a technique to escape from paying AFA?
Yes actually, there are two ways.
Firstly, you should utilize use less electricity. AFA is waived for total consumption of 600 kWh and below a month.
Secondly, there’s something called Green Energy Tariff (GET) which you’ll go for. This exempts you from AFA. Nonetheless, GET itself costs 5 sen/kWh if you happen to lock in for a 1 12 months subscription, 4 sen/kWh for two years, and three sen/kWh for 3 years, thus it only makes economic sense to subscribe to it if AFA is greater than what GET costs across your entire period that you simply subscribe it for.
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This Article First Appeared At paultan.org
