KUALA LUMPUR, July 21 — If your June electricity bill looks higher than usual, you’re not alone.Many Malaysians are noticing a bigger Automatic Fuel Adjustment (AFA) or fuel surcharge item on their Tenaga Nasional Berhad (TNB) bill — just as the weather seems to be getting hotter and we’re using more air-conditioning.

Here’s a simple breakdown of what’s going on, why this charge keeps changing, and what you can do to keep your bill under control.

What is the AFA?

The AFA is a monthly surcharge shown on your TNB bill that reflects changes in the cost of fuel and related generation expenses.

Think of it as a mechanism that keeps the “fuel” portion of your electricity price aligned with real-world costs: when fuel or foreign exchange rates rise, the AFA rises; when they fall, the AFA can drop.

The Energy Commission or a ministerial decision declares the final AFA rate expressed in sen per kWh.

 Why can’t you always predict it from last month’s bill?

TNB projects fuel and FX costs and sets an AFA projection for billing.

Once actual generation costs are known, differences are reconciled in later months’ AFA.

That’s why the published AFA is an evolving number rather than a fixed tariff.

Recent increases — the numbers

  • 1–30 June 2026: +2.59 sen/kWh
  • 1–31 July 2026: +3.59 sen/kWh (partly subsidised by the Electricity Industry Fund/ Kumpulan Wang Industri Elektrik)
  • TNB also published a 3‑month forecast showing larger increases ahead: Aug +8.33 sen/kWh, Sep +8.94 sen/kWh, Oct +8.04 sen/kWh — a sign of continued pressure on generation costs.

How do global events like the US‑Iran tensions affect your bill?

Fuel for some power plants comes from imported oil, diesel or gas, and many contracts are priced in foreign currencies.

Geopolitical events such as the current US-Iran tensions in West Asia can tighten global fuel supply, spike oil and liquefied natural gas (LNG) prices and push up the ringgit‑dollar exchange rate.

Higher commodity prices and a weaker ringgit increase the cost of fuel purchases for generators; those added costs flow through the AFA mechanism into consumer bills.

 Who gets exemptions and relief?

TNB’s billing breakdown now lists three components: Energy Charge (generation fuel), AFA (fuel and FX adjustments), and Capacity Charge (payments under power purchase agreements and service level agreements).

According to the TNB website, about 85 per cent of domestic customers consuming 600 kWh or less monthly remain exempt from AFA, the retail charge and 8 per cent SST.

Customers consuming 300 kWh or less are also exempt from the renewable energy fund.

For July 2026, part of the AFA rise was mitigated by a RM206 million contribution from the Electricity Industry Fund, which serves as a targeted subsidy to shield consumers from sudden spikes in their electricity bills.

 How does AFA affect your monthly electricity bill?

AFA is charged in sen per kWh.

Multiply the AFA rate by your monthly consumption to estimate the surcharge.

For example, if AFA is +3.59 sen/kWh and you use 400 kWh, that adds about RM14.36 to your bill (3.59 sen × 400 kWh = 1,436 sen = RM14.36).

Households under the stated exemptions see no AFA on their bills up to the threshold.

 Beware of time-based rates

 Time‑based rates charge different prices depending on when you consume electricity. Common formats:

  • Time‑of‑Use (ToU): higher prices in peak hours, lower in off‑peak.
  • From Monday to Friday, peak is from 2pm to 10pm while off-peak covers 10pm to 2om the next day.
  • Critical Peak Pricing: very high prices during a few system‑stress hours.

 Why does it help?

Shifting energy use (laundry, charging EVs, water heaters) to off‑peak hours lowers bills and eases demand during peak heat.

Time‑based rates also encourage investment in smart and chargeable appliances that can run on batteries.

What to watch next?

AFA is forward‑looking and responsive to global fuel markets and exchange rates.

With geopolitical risks and heatwaves pushing demand, AFA is likely to remain a variable factor in the coming months.

Check official announcements from the Energy Commission and TNB for updated AFA rates and monitor your household consumption to manage costs.

 How to manage your electricity consumption?

The short-term way to blunt rising bills is to manage cooling use, since air conditioners are usually the biggest single household load:

  • Raise the thermostat to 24–26 degrees Celsius — each degree lower increases consumption.
  • Use fan + A/C combo: fans allow comfortable setpoints a bit higher.
  • Clean or replace filters monthly for efficient airflow.
  • Seal gaps on windows/doors and use reflective blinds/curtains to cut heat gain.
  • Use economy or sleep modes and avoid long periods of wide-open cooling when rooms are empty.
  • Maintain outdoor unit clearance and schedule professional servicing if it’s been a while.
  • Consider ceiling fans and natural ventilation during cooler hours.