TNB customers receive RM3.1bil AFA rebate since July 2025
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has clarified that the automatic fuel adjustment (AFA) does not cause a sudden increase in electricity bills, following concerns raised by some consumers on the rising bills.
Tenaga Nasional Bhd (TNB) has addressed concerns from customers about rising electricity bills, explaining that the automatic fuel adjustment (AFA) mechanism is designed to balance changes in fuel costs and foreign exchange rates, rather than causing sudden bill increases. Since its introduction in August 2025, consumers have received AFA rebates totaling RM3.1 billion, compared to RM0.8 billion in AFA surcharges.
The AFA functions as a two-way adjustment, with rebates when global fuel costs are low and surcharges when they rise, such as due to the Middle East crisis since May 2026. TNB noted that September 2026's AFA surcharge was 3.67 sen per kWh. The government injected RM435 million through the Electricity Industry Fund (KWIE) to mitigate the surcharge impact on low-consumption consumers.
These consumers, using less than 600kWh monthly, are fully exempt from AFA charges and also exempt from an eight percent service tax and retail charges. TNB emphasized that factors like festive seasons, school holidays, and remote work affect household electricity consumption, leading to variations in monthly bills.
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