Tenaga Nasional Berhad (TNB) has stated that the Automatic Fuel Adjustment (AFA) rate for the month of January 2026 is -4.99 sen/kWh from -6.42 sen/kWh in December 2025. The AFA, which is ready by the Energy Commission (ST), replaces the previous Imbalance Cost Pass-Through (ICPT) and is robotically 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 TNB’s Electricity Tariff Restructuring that took effect from July 1, 2025, the AFA is one in all five components or “charges” used to calculate your electricity bill. Here’s the overview:
- Generation charge: 27.03 sen/kWh for total consumption of 1,500 kWh and below monthly or 37.03 sen/kWh for total consumption greater than 1,500 kWh monthly. 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. This can be a fixed cost for metering, billing and customer support.
- AFA rate: -4.99 sen for the month of January 2026; waived for total consumption of 600 kWh and below a month.
You should use our TNB Bill Calculator tool to get a rough estimate on how much your electricity bill will probably be for the month. Essentially, for those who 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 (-4.99 sen/kWh discount for January 2026).
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 might only be 44.43 sen/kWh – retail and AFA charges are waived.
Here’s a listing of the monthly AFA rates to this point:
- 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
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 (the more the usage, the lesser the inducement), with the utmost discount being 25 sen/kWh.
Domestic users which have smart meters even have choice to enter the Time of Use (ToU) scheme, allowing them to alter their electricity usage pattern and reap the benefits of lower tariff rate 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 here are the energy charges under this scheme:
For usage of 1,500 kWh and below monthly
- Peak tariff: 28.52 sen per kWh
- Off-peak tariff: 24.43 sen per kWh
For usage above 1,500 kWh monthly
- Peak tariff: 38.52 sen per kWh
- Off-peak tariff: 34.43 sen per kWh
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This Article First Appeared At paultan.org
