Introducing the Automatic Fuel Adjustment mechanism
As part of efforts to improve transparency and fairness in electricity pricing, the Automatic Fuel Adjustment (AFA) mechanism now replaces the Imbalance Cost Pass-Through (ICPT). This new approach enables more accurate, market-based fuel cost adjustments, providing consumers with a system that is timely, reflective of actual prices, and promotes energy efficiency.
The infographic below highlights the key features and benefits of this mechanism.
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For further details, visit www.mytnb.com.my/tariff.
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The Star
17 hours ago
- The Star
Introducing the Automatic Fuel Adjustment mechanism
As part of efforts to improve transparency and fairness in electricity pricing, the Automatic Fuel Adjustment (AFA) mechanism now replaces the Imbalance Cost Pass-Through (ICPT). This new approach enables more accurate, market-based fuel cost adjustments, providing consumers with a system that is timely, reflective of actual prices, and promotes energy efficiency. The infographic below highlights the key features and benefits of this mechanism. CLICK TO ENLARGE For further details, visit
The Star
a day ago
- The Star
Fairer electricity rates for 23.6 million in Peninsular Malaysia
Automatic Fuel Adjustment (AFA) will replace the ICPT mechanism, enabling monthly updates to electricity charges based on market fuel prices and forex rates, according to the Energy Commission. Over 23.6 million domestic users in Peninsular Malaysia will benefit from fairer and more progressive electricity rates with the implementation of the new electricity tariff schedule approved by the government. This tariff will take effect from July 1 to Dec 31 2027 under the Incentive-Based Regulation (IBR) framework, in line with the provisions under Section 26 of the Electricity Supply Act 1990. The electricity tariff revision for the Fourth Regulatory Period (RP4) involves the restructuring of the following three (3) components: (i) average base tariff rates; (ii) new tariff schedule; and (iii) fuel costs adjustment mechanisms. Adjustment of the average base tariff rate The average base tariff is adjusted based on the estimated cost of electricity supply for the RP4 period and set at 45.40 sen/kWh compared with 45.62 sen/kWh approved in December 2024. With this adjustment, the overall average electricity tariff cost is reduced by up to 19 per cent compared with the Third Regulatory Period (RP3). Electricity tariff structure changes cover customer categories, charges and incentives The introduction of the new tariff schedule covers the following: (i) a revision of customer categories, divided into domestic and non-domestic, based on voltage usage, whether low, medium or high voltage; and (ii) the setting of charges for the energy, capacity, network and retail components, based on their respective costs. The Energy Efficiency Incentive will be introduced to encourage 23.6 million domestic users to adopt prudent electricity consumption practices. Through this incentive, domestic users with electricity consumption of 1,000 kWh and below are not expected to be affected by the implementation of the new tariff schedule. In addition, non-domestic low voltage users with electricity consumption of 200 kWh and below will also benefit from this incentive. In addition, the Time of Use (ToU) scheme has been streamlined and expanded to offer a longer off-peak period, covering the entire Saturdays and Sundays, as well as from 10PM to 2PM on weekdays from Monday to Friday. This is to encourage more efficient consumption management based on demand periods, in line with efforts towards a more efficient and sustainable energy system. By shifting their usage to off-peak periods, consumers can reduce their electricity bills compared to using electricity during peak periods. To ensure that social and welfare needs continue to be looked after, the government has agreed to: (i) apply specific tariffs for the agriculture, water and sewerage services, as well as rail operators or traction; (ii) a 10 percent rebate will be provided for registered institutions of higher learning, schools, charitable homes, and places of worship; and (iii) continue the RM40 Electricity Bill Rebate Programme, which provides a monthly subsidy of up to RM40 for Heads of Households (KIR) categorised as hardcore poor and registered with the e-Kasih system under the Prime Minister's Department (PMD). Eligible users can check their eligibility status via official portal or by visiting their nearest electricity utility provider office. The new rates are expected to provide greater cost efficiency for everyday Malaysian households. 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Implementation and user support services The new tariff schedule will take effect from July 1 and this will be reflected in electricity bills based on usage from July 2025 onwards. Details of the rates and new categories (where applicable) can be checked through the following channels: The tariff schedule will be published on the website from June 21, at 12.00 noon; An estimate of future monthly electricity bills can be calculated using the electricity tariff calculator, which will be accessible from July 2025 via the abovementioned website earliest by June 23; For further enquiries, users are encouraged to contact TNB CareLine at 1-300-88-5454, email tnbcareline@ or reach out through other official TNB platforms.
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No electricity surcharge for Sabah, Labuan
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