Understanding Automatic Fuel Adjustment (AFA): Why Your TNB Bill Changes Every Month

Have you noticed your TNB electricity bill changing even when your usage feels the same? The reason is the Automatic Fuel Adjustment (AFA), a monthly mechanism that links your bill to global fuel prices.

Since July 2025, AFA has officially replaced the ICPT (Imbalance Cost Pass-Through), making your bill more directly tied to real market conditions.
 

What is AFA?

Automatic Fuel Adjustment (AFA) is a monthly adjustment that reflects the actual cost of fuel used to generate electricity in Malaysia.

Because electricity is generated from coal, natural gas, hydro, and some renewables, changes in fuel prices directly affect the cost of generation. AFA passes this change to your bill:

• If fuel costs rise → AFA adds a surcharge.

• If fuel costs fall → AFA provides a rebate.
   

How Does AFA Work?

Think of AFA as a floating add-on to your regular tariff:

• Your base tariff (energy charge per kWh) remains fixed by TNB under government regulation.

• The AFA rate is updated monthly, based on global coal and gas prices and exchange rates.

This keeps electricity pricing fair and transparent.
 

Who Pays AFA (and Who Doesn’t)?

Under the July 2025 tariff structure:

• Domestic users consuming ≤ 600 kWh/month

  • Fully exempted from AFA.

  • Also exempt from the RM10 Retail Charge.

•  Domestic users consuming > 600 kWh/month

  • Must pay AFA on their entire usage, not just the extra units.

• Commercial and industrial users

  • AFA applies to all consumption, with no exemptions.
     

Example: AFA at RM0.05/kWh

Let’s assume the AFA rate is RM0.05 per kWh. Here’s how it affects your bill:

From the chart, you can clearly see:

• Bills stay unaffected up to 600 kWh/month.

• Once you cross the threshold, AFA grows steadily with each additional kWh.
   

Why Does My Bill Change Every Month?

Even if your usage is stable, your bill may fluctuate because:

1. Fuel prices change monthly in global markets.

2. AFA rate is reviewed monthly to reflect these changes.

3. Crossing the 600 kWh threshold triggers AFA charges on your entire usage.

So, using 590 kWh (no AFA) vs 610 kWh (AFA applied to all 610 kWh) can cause a big jump.
 

How to Reduce or Avoid AFA

1. Stay below 600 kWh/month

   • The simplest way to be fully exempt.

   • 600 kWh ≈ RM219 in base energy charges.

2. Switch to solar power (Contact us NOW !!)

   • Generate your own clean energy.

   • Reduce dependence on TNB supply and avoid AFA surcharges.

3. Use energy efficiency

   • Switch to LED lights.

   • Choose inverter appliances.

   • Turn off idle devices.

   • Track consumption in the myTNB app.
      

Why AFA Matters

• Ensures transparent billing tied to actual fuel costs.

• Protects TNB from volatile market swings while letting consumers benefit from falling fuel prices.

• Encourages households to be energy-conscious.
   

Key Takeaways

• AFA = Automatic Fuel Adjustment, reviewed monthly.

• ICPT is gone, AFA replaced it in July 2025.

• Exemption: Domestic users consuming ≤ 600 kWh/month.

• If usage > 600 kWh, AFA applies to all units consumed.

• At RM0.05/kWh, 1,000 kWh = RM50 in AFA charges.

• Save money by staying ≤ 600 kWh, adopting solar, or using energy efficiently.
   

In short: Your TNB bill changes because of AFA. If you keep your usage at or below 600 kWh/month, you can completely avoid this adjustment.