TNB – Automatic fuel adjustment does not cause sudden hike in electricity bills

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has stated that the automatic fuel adjustment (AFA) does not lead to sudden increases in electricity bills, following concerns from some consumers about rising costs. The company explained that AFA operates as a two-way mechanism, adjusting for changes in fuel costs and foreign exchange rates.

When global fuel prices are low, consumers receive a rebate, with the savings directly applied to their electricity bills. Over the past nine months, from August 2025 to April 2026, consumers have received AFA rebates each month. However, when global fuel prices rise, the difference is adjusted through a surcharge. TNB implemented the surcharge in May 2026 due to the crisis in the Middle East, and the current AFA surcharge for September 2026 is 3.67 sen per kWh.

Despite the AFA, consumers have received more benefits overall, with a total of RM3.1 billion in rebates compared to RM0.8 billion in surcharges. The government has allocated an additional RM435 million through the Electricity Industry Fund (KWIE) to mitigate the impact of the AFA surcharge on consumers. TNB noted that households with monthly electricity consumption of 600kWh or less are exempt from AFA charges, both in the form of rebates and surcharges.

Additionally, these consumers are exempt from the eight percent service tax and retail charges under the new tariff. This group pays between two percent and 14 percent less compared to the previous tariff, depending on their consumption level. TNB emphasized that the AFA does not cause sudden increases in electricity bills. Instead, factors such as festive seasons, school holidays, and working from home affect household electricity consumption patterns, subsequently influencing monthly electricity bills.