TNB bill AFA rate October 2026 set at +3.61 sen/kWh

· Paul Tan's Automotive News

Paul Tan · October 1 2026 Link copiedShare×Link copied!

The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) rate for October 2026 has been set at +3.61 sen per kWh, down marginally from +3.67 sen/kWh in September 2026.

According to Single Buyer, the AFA for October amounts to a surcharge of RM391 million, up from RM375 million in September – but spread over higher electricity demand, that works out to a slightly lower per-kWh rate.

This is the sixth consecutive month that AFA has been positive, and the computed rate has now exceeded the 3 sen/kWh automatic band for five months running. Under the government’s temporary expanded protection, domestic users consuming 800 kWh and below a month are exempted from AFA, the retail charge and SST until December 31, 2026.

The new three-month outlook has turned upward: +4.27 sen/kWh for November, +4.46 sen/kWh for December and +7.59 sen/kWh for January 2027. November has been revised up from the +2.81 sen/kWh projected a month ago, while December has come down from +5.48 sen/kWh. If the January projection holds, it would be the highest AFA surcharge since the mechanism was introduced in July 2025 – and it would land in the very month the 800 kWh protection lapses and the threshold reverts to 600 kWh.

As always, TNB notes that the outlook is an estimate to help customers plan, and the eventual figure depends on actual fuel costs, the true-up and any KWIE support.

The fuel price picture

Fuel prices edged up in October and remain above the baselines used in tariff setting, which is why a surcharge still applies. Tier 2 gas rose to 58.92 RM/mmBTU from 57.87 RM/mmBTU in September (base price: 46 RM/mmBTU), while Tier 1 gas climbed to 32.68 RM/mmBTU from 31.71, still below its 35 RM/mmBTU base. Coal was up slightly at 123.76 USD/MT from 122.85 USD/MT (base price: 97 USD/MT); the ringgit firmed a touch to 4.0834 RM/USD from 4.0944 (still firmer than the 4.307 base rate), putting coal at 23.16 RM/mmBTU in ringgit terms (base price: 19.14 RM/mmBTU).

What is Automatic Fuel Adjustment (AFA)?

AFA is a component of your electricity bill. To recap, AFA replaces the previous Imbalance Cost Pass-Through (ICPT) and is automatically calculated as either a surcharge or discount of up to 3 sen/kWh depending on fuel prices – this is revised monthly, with any larger changes (beyond 3 sen) requiring cabinet approval.

That 3 sen threshold remains very much in play. The computed AFA has exceeded the automatic band for five months running – 3.44 sen in June, 5.55 sen in July, 4.28 sen in August, 3.67 sen in September and now 3.61 sen in October – and when that happens, the Energy Commission refers the matter to the government, which decides how much of the cost is passed through to consumers.

Introduced as part of the Electricity Tariff Restructuring that took effect from July 1, 2025, the AFA is one of five components or ‘charges’ used to calculate your electricity bill:

  • Generation charge: 27.03 sen/kWh for total consumption of 1,500 kWh and below per month or 37.03 sen/kWh for total consumption more than 1,500 kWh per month. This covers the actual cost of generating electricity from power plants.
  • Capacity charge: 4.55 sen/kWh. This covers the cost of maintaining sufficient electricity supply capacity.
  • Network charge: 12.85 sen/kWh. This covers the cost of operating and maintaining the grid and the local network to deliver electricity.
  • Retail charge: RM10/month; waived for total consumption of 800 kWh and below a month until December 2026 (600 kWh and below from January 2027). This is a fixed cost for metering, billing and customer service.
  • AFA rate: +3.61 sen/kWh for the month of October 2026; waived for total consumption of 800 kWh and below a month until December 2026 (600 kWh and below from January 2027).

Essentially, if you use over 1,500 kWh a month, you add the generation, capacity and network charges (totalling 54.43 sen/kWh) to the retail charge (RM10) and the AFA rate (+3.61 sen/kWh for October 2026; positive number, so it’s a surcharge).

Alternatively, if your usage is below 1,500 kWh a month, it’s 44.43 sen/kWh plus the retail charge and AFA rate. For total consumption of 800 kWh and below a month until the end of this year, it would only be 44.43 sen/kWh – retail and AFA charges are waived.

Here’s a list of the monthly AFA rates so far:

  • July 2025: 0.00 sen/kWh
  • August 2025: -1.45 sen/kWh
  • September 2025: -1.10 sen/kWh
  • October 2025: -6.50 sen/kWh
  • November 2025: -8.91 sen/kWh
  • December 2025: -6.42 sen/kWh
  • January 2026: -4.99 sen/kWh
  • February 2026: -2.77 sen/kWh
  • March 2026: -2.15 sen/kWh
  • April 2026: -0.47 sen/kWh
  • May 2026: +1.38 sen/kWh
  • June 2026: +2.59 sen/kWh
  • July 2026: +3.59 sen/kWh
  • August 2026: +3.80 sen/kWh
  • September 2026: +3.67 sen/kWh
  • October 2026: +3.61 sen/kWh

Domestic consumers who use less than 1,000 kWh a month can enjoy a discount called ‘Insentif Cekap Tenaga‘ or ‘Energy Efficiency Incentive’. The discount provided is relative to consumption (higher usage, lower incentive), with the maximum discount being 25 sen/kWh.

Domestic users who have smart meters also have the option to enter the Time of Use (ToU) scheme, allowing them to change their electricity usage patterns and take advantage of lower tariff rates during off-peak hours to enjoy savings on their monthly bill.

The scheme has two time zones, with off-peak timings being from 10pm to 2pm from Monday to Friday and throughout the day (24 hours) for weekends. Peak hours are from 2pm to 10pm on weekdays. Here are the energy charges under this scheme:

For usage of 1,500 kWh and below per month

  • Peak tariff: 28.52 sen per kWh
  • Off-peak tariff: 24.43 sen per kWh

For usage above 1,500 kWh per month

  • Peak tariff: 38.52 sen per kWh
  • Off-peak tariff: 34.43 sen per kWh

Is there a way to escape from paying AFA?

Yes actually, there are two ways.

Firstly, you can use less electricity. AFA is waived for total consumption of 800 kWh and below a month until December 31, 2026, after which the threshold reverts to 600 kWh.

Secondly, there is something called Green Energy Tariff (GET) which you can opt for. This exempts you from AFA – and, since August 1, 2025, from the 1.6% renewable energy fund (KWTBB) levy too – on the green units you subscribe.

However, GET itself costs 5 sen/kWh if you lock in for a 1 year subscription, 4 sen/kWh for 2 years, and 3 sen/kWh for 3 years, thus it only makes economic sense to subscribe to it if AFA is more than what GET costs across the entire period that you subscribe it for.

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