TNB bill AFA rate November 2026 set at +3.60 sen/kWh

by · Paul Tan's Automotive News

The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) rate for November 2026 has been set at +3.60 sen per kWh, almost unchanged from +3.61 sen/kWh in October 2026.

According to Single Buyer, the AFA for November works out to a surcharge of RM562 million or 5.47 sen/kWh, up from RM391 million (3.61 sen/kWh) in October, mainly because of higher fuel prices. That’s the highest computed rate since July’s 5.55 sen/kWh.

Single Buyer says 34% of that, or RM192 million (1.87 sen/kWh), is offset with savings from the Energy Cost True-Up Adjustment (ECTUA) for July 2026, which reduces the surcharge to 3.60 sen/kWh or RM370 million, below the +4.27 sen/kWh that TNB projected for November a month ago. TNB’s figures show that the Kumpulan Wang Industri Elektrik (KWIE) fund subsidised the AFA by a total of RM435 million from May to August, with none since.

This is the seventh consecutive month that AFA has been positive, and the computed rate has now exceeded the 3 sen/kWh automatic band for six months running. Under the government’s temporary expanded protection, domestic users consuming 800 kWh and below a month, which TNB says is 85% of its domestic customers, are exempted from AFA, the retail charge and SST until December 31, 2026.

TNB has said it will absorb between RM120 million and RM150 million in foregone AFA surcharges from September to December, New Straits Times reported in September. The RM150 million upper estimate assumed coal peaking at US$130 per tonne, while November’s coal price is 136.81 USD/MT. TNB president and CEO Datuk Shamsul Ahmad said at the time that the company would cover the cost even if it goes beyond that.

The new three-month outlook, updated as of October 30, is +7.98 sen/kWh for December 2026, +6.23 sen/kWh for January 2027 and +6.27 sen/kWh for February 2027. December has been revised up from the +4.46 sen/kWh projected a month ago, while January has come down from +7.59 sen/kWh. Any of these would be the highest AFA surcharge since the mechanism was introduced in July 2025, beating the +3.80 sen/kWh in August.

Single Buyer says the projection is based on its Emerging Conflict base case, with fuel prices trending upward because of the US-Israel-Iran conflict and El Niño. It assumes an average coal price of 141 USD/MT, Tier 2 gas at 67 RM/mmBTU and an exchange rate of 4.07 RM/USD. Its moderate and high cases assume an escalating and a severe conflict.

The 800 kWh protection covers December, but not January and February. Unless the government extends it, the threshold reverts to 600 kWh from January 1, 2027, and TNB’s commitment to absorb the surcharge covers September to December only. Treasury secretary-general Tan Sri Johan Mahmood Merican said last month that the government is re-looking at the way forward with TNB and the Energy Commission. “That decision hasn’t been firmed up in terms of what would be the parameters for next year,” he said, The Edge reported.

If you go over the threshold, you pay AFA on your entire month’s usage. At 1,000 kWh, that’s RM36 at +3.60 sen/kWh and RM79.80 at +7.98 sen/kWh, before SST.

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 cushioning.

The fuel price picture

Fuel prices jumped in November and remain above the baselines used in tariff setting, which is why a surcharge still applies. Tier 2 gas rose to 68.68 RM/mmBTU from 58.92 RM/mmBTU in October (base price: 46 RM/mmBTU), while Tier 1 gas climbed to 35.00 RM/mmBTU from 32.68, now level with its 35 RM/mmBTU base. Coal rose to 136.81 USD/MT from 123.76 USD/MT (base price: 97 USD/MT). The ringgit firmed a touch to 4.0629 RM/USD from 4.0834 (still firmer than the 4.307 base rate), which puts coal at 25.47 RM/mmBTU in ringgit terms, up from 23.16 (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.

The computed AFA has been above that 3 sen band since June (3.44 sen in June, 5.55 sen in July, 4.28 sen in August, 3.67 sen in September, 3.61 sen in October and 5.47 sen in November). 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: +3.60 sen/kWh for the month of November 2026; waived for total consumption of 800 kWh and below a month until December 2026 (600 kWh and below from January 2027).

You can use our TNB Bill Calculator tool to get a rough estimate on how much your electricity bill will be for the month. 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 (+3.60 sen/kWh for November 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
  • November 2026: +3.60 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 unless the government extends it.

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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