If your June electricity bill looks higher than usual, you’re not alone. As temperatures rise and more households turn on their air conditioners, many Malaysians are also seeing changes in the Automatic Fuel Adjustment (AFA) component of their Tenaga Nasional Berhad (TNB) bills.
But what exactly is AFA, why does it keep changing, and how much could it add to your monthly bill?
Here’s what you need to know.
What is AFA?
The Automatic Fuel Adjustment (AFA) is a monthly charge that reflects changes in fuel and other costs involved in electricity generation.
The rate is expressed in sen per kWh and can change depending on factors such as fuel prices and foreign exchange movements. Because these costs fluctuate, the AFA is not a fixed charge and can go up or down from month to month.
Why does the AFA keep changing?
TNB uses projections for factors such as fuel and foreign exchange costs when calculating the AFA.
Once actual generation costs become available, differences between projected and actual costs can be reflected in subsequent adjustments.
This means the AFA rate can change over time rather than remaining at one fixed amount.
Recent AFA rates
According to the figures provided:
- June 2026: +2.59 sen/kWh
- July 2026: +3.59 sen/kWh, with part of the increase subsidised through the Electricity Industry Fund
The figures provided also include a three-month forecast:
- August: +8.33 sen/kWh
- September: +8.94 sen/kWh
- October: +8.04 sen/kWh
If these projected rates materialise, households could see further pressure on electricity costs in the coming months.
How do global events affect your electricity bill?
Global energy markets can have an impact on electricity generation costs.
Fuel used by power plants may include imported gas, diesel and other energy sources, while some fuel contracts are linked to foreign currencies.
Geopolitical tensions, disruptions to shipping routes and changes in global oil and LNG prices can therefore affect generation costs. A weaker ringgit against the US dollar can also make imported fuel more expensive.
These additional costs may eventually be reflected through the AFA mechanism.
Who is exempt from AFA charges?
According to TNB’s billing information, around 85% of domestic customers who use 600 kWh or less per month remain exempt from AFA, retail charges and 8% SST, subject to the applicable tariff structure.
Customers consuming 300 kWh or less per month are also exempt from the Renewable Energy Fund charge.
For July 2026, part of the AFA increase was reportedly offset by a RM206 million contribution from the Electricity Industry Fund, helping to reduce the impact on consumers.
How much can AFA add to your bill?
AFA is calculated based on your electricity consumption.
For example, if the AFA rate is +3.59 sen/kWh and your household uses 400 kWh:
3.59 sen × 400 kWh = RM14.36
That means the AFA component would add approximately RM14.36 to your bill, before taking into account any applicable exemptions or other charges.
Could Time-of-Use rates help lower your bill?
Households on time-based electricity plans can potentially save money by shifting electricity use to off-peak periods.
Under Time-of-Use (ToU) pricing, electricity rates vary depending on when you consume it.
For example, activities such as:
- Washing clothes
- Charging an EV
- Running water heaters
- Using certain appliances
could be shifted to off-peak hours where lower rates apply.
However, whether this saves you money depends on your specific tariff plan and consumption habits.
How to keep your electricity bill under control
With hotter weather encouraging greater use of air conditioning, cooling can become one of the biggest contributors to household electricity consumption.
Here are some simple ways to reduce usage:
- Set your air conditioner to around 24–26°C
- Use a fan together with your air conditioner
- Clean or replace air-conditioning filters regularly
- Keep doors and windows properly sealed
- Use curtains or reflective blinds to reduce heat entering your home
- Use economy or sleep modes where available
- Avoid running air conditioning in empty rooms
- Keep the outdoor unit clear of obstructions
- Service your air conditioner regularly
Small changes in daily habits can make a difference, especially for households using air conditioning for long periods.
What happens next?
The AFA is designed to respond to changes in fuel costs and other factors affecting electricity generation.
With global energy markets remaining volatile and electricity demand potentially rising during periods of extreme heat, the AFA could continue to fluctuate.
For the latest rates, households should check official updates from TNB and the Energy Commission, while keeping an eye on monthly electricity consumption to manage their bills.
Follow Wah Piang for more.
