What Is AFA in Your TNB Bill? (Automatic Fuel Adjustment Explained)

What Is AFA in Your TNB Bill? (Automatic Fuel Adjustment Explained)

If you’re a household or business receiving an electricity bill from TNB, you might have noticed a line item labelled AFA. But what exactly is it? In this post we’ll explain:

• what AFA means

• why you’re seeing it on your bill

• how it is calculated and who it applies to

• how you can reduce its impact on your electricity bill
  

1. What Does AFA Stand For?

• AFA stands for Automatic Fuel Adjustment. It is a mechanism introduced in Malaysia to adjust the electricity tariff based on changes in the cost of fuel (such as coal, gas) and foreign exchange rates. 
• It replaces the previous mechanism known as the Imbalance Cost Pass‑Through (ICPT). 
• In simple terms: when fuel costs go up or the ringgit depreciates, the AFA may add a surcharge; when fuel costs drop, you may get a rebate.

2. Why Was AFA Introduced?

Here are the main reasons:

• To make your electricity bill more transparent and reflect actual generation/fuel costs. 

• To allow monthly adjustments, rather than every six months under ICPT, meaning smaller, more frequent changes rather than big jumps.

• To encourage more responsible energy use, and ensure that tariffs align with global fuel markets. 
   

3. How Does AFA Work on Your TNB Bill?

Here’s the breakdown:

• From 1 July 2025, the new tariff mechanism includes AFA as one of the components.

• For domestic consumers who consume 600 kWh/month or less, the AFA component (and retail charge) is waived, meaning no AFA surcharge or rebate applied. 

• If you consume more than 600 kWh/month, AFA applies to your total consumption (for domestic) as well as all consumption for commercial/industrial users. 

• The rate (in sen per kWh) is declared monthly by the Energy Commission Malaysia (ST) or via official ministerial decision. 

Example: In November 2025 the AFA rate was -8.91 sen/kWh (a rebate), meaning your bill may be lower by that amount per kWh. 

Another example: For October 2025, the AFA was a rebate of ~6.5 sen/kWh.

       
 

4. Impact on Your Electricity Bill

• If your usage is ≤ 600 kWh/month, you are exempt from AFA. So your bill will not include that component. (Good news if you’re a low-usage household.) 

• If your usage is higher, or you are a business user, your bill will reflect the AFA rate, which can lead to fluctuations (either up or down) depending on fuel cost movements.

• Even if your electricity consumption stays the same, your bill can change because the AFA rate changes monthly. 
   

5. How Can You Manage or Reduce AFA Impact?

Here are practical tips to keep your electricity bill (including the AFA component) under control:

• Monitor and keep your usage under 600 kWh/month if possible, this ensures exemption from AFA for domestic users.

• Use energy-efficient appliances: Lights, air-conditioners, appliances with inverter or high energy rating.

• Shift usage to off-peak times if your tariff allows (check options like Time-of-Use).

• Consider solar or renewable generation (if feasible) which reduces consumption from the grid and hence your exposure to AFA.

• Track your bill monthly, compare usage vs previous months, and check the declared AFA rate to understand the variation.
   

6. Why Knowing About AFA Matters for You

• Understanding the AFA component helps you interpret your bill correctly, no longer is it a mysterious change in amounts.

• By knowing your usage threshold for exemption (600 kWh), you can plan and budget better.

• For businesses, with larger consumption, being aware of how AFA, capacity and network charges work is critical for cost-management.

• It also raises awareness about how global fuel prices and currency movements eventually affect your everyday utility bill, which helps you make smarter energy decisions.
   

7. FAQ – Frequently Asked Questions About AFA

Q1: I use 550 kWh/month. Will I pay AFA?
A: No, domestic consumer with usage ≤ 600 kWh/month is exempt from AFA.

Q2: My usage is 650 kWh/month, how is AFA applied?
A: Since you exceed the 600 kWh threshold, the AFA rate (e.g., -8.91 sen/kWh for Nov 2025) will apply to all your kWh consumed (650 kWh × -8.91 sen) resulting in a rebate.

Q3: Does AFA always mean an increase?
A: No, it can mean a rebate (i.e., your bill goes down) if fuel costs and/or exchange rates favour it. For example, Oct 2025 had a rebate of ~6.5 sen/kWh. 

Q4: Where can I find the AFA rate?
A: Go to the official tariff page of TNB (myTNB) or the Energy Commission website. 
 

AFA Charge Prediction

• December 2025: approx −5.68 sen/kWh (i.e., a rebate)

• January 2026: approx −1.10 sen/kWh (i.e., a rebate)
   

  ⚠️ Important Caveats

• These are forecast values (projections) published by TNB/ST for upcoming months.

• The actual declared AFA rate for each month may differ based on fuel prices, foreign exchange, and government approval.

• For domestic households whose consumption is 600 kWh or below, AFA is exempted, so the rebate/surcharge won’t apply. 

• Use the forecasts as illustrative guidance in your blog, mention they’re subject to change.
  

8. Conclusion

The Automatic Fuel Adjustment (AFA) is an important new component in your TNB electricity bill. By linking part of your electricity cost to fuel and currency markets, it ensures greater transparency and fairness, but it also means you need to keep an eye on your usage and rate changes.

If you keep your usage under the threshold, you can avoid the AFA component entirely (for domestic households). And by adopting energy-efficient habits, you can reduce the impact of any unfavorable AFA rate movement.

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