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Efforts have been introduced to make electricity bills fairer and more transparent for consumers
One of the key improvements in the new tariff structure is the introduction of the Automatic Fuel Adjustment (AFA), which replaces the previous Imbalance Cost Pass-Through (ICPT) mechanism.
Malaysians may have already noticed AFA on their electricity bills.
But what is AFA, actually? And how does it impact your monthly electricity bill?
In simple terms, AFA is like a "monthly fuel-price update" for your electricity
When global fuel prices or currency exchange rates move up or down, the AFA adjusts your bill accordingly.
AFA works by tracking projected fuel prices and foreign exchange rates, and then adjusting the charges based on the actual market figures. In simple terms, it helps customers anticipate cost changes earlier and manage their monthly budget with more stability.
Each month, the rate is confirmed by the Energy Commission (Suruhanjaya Tenaga), and it will either appear as:
- A rebate: You pay less
- A surcharge: You pay a small additional amount if fuel costs rise
If you haven't seen AFA pop up in your electricity bill, chances are, you're simply not affected by it
AFA does not affect everyone. It only affects two groups:
- Non-domestic users (shops, factories, offices)
- Domestic users who consume more than 600kWh per month
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This means if you use under 600kWh each month, AFA will not appear on your bill at all.
The AFA rate for December is -6.42 sen/kWh, which means those affected will enjoy rebates, leading to lower electricity bills
You can easily check the current month's AFA rate and a three-month forecast on myTNB portal, allowing you to plan your energy usage responsibly.
