Tenaga Nasional Berhad announced that the automatic fuel adjustment (AFA) for April is set at a rebate of 0.47 sen/kWh, lower than the 2.15 sen/kWh in March.
AFA is a monthly electricity tariff adjustment mechanism introduced by the Energy Commission in July last year, based on changes in fuel costs such as gas and coal as well as exchange rates.
This mechanism replaces the ICPT system which was previously reviewed every six months.
This reduction in the rebate rate has caused electricity costs to increase as consumers receive a smaller rebate of 1.68 sen/kWh in April.
To illustrate, a consumption of 800kWh will see the bill increase from RM328.34 in March to RM342.05 in April.
However, domestic consumers with consumption below 600kWh per month are exempted from the implementation of the AFA, whether in the form of a rebate or surcharge.
In addition, the AFA does not apply to consumers who subscribe to green electricity tariffs, which use renewable energy sources.
In terms of control, AFA adjustments in the form of surcharges are capped at a maximum of 10% of the monthly generation tariff, while any increase beyond this limit requires Cabinet approval. There is no cap on the granting of rebates.
Based on TNB's three-month projections, the rebate rate is expected to remain low with an estimated 0.39 sen/kWh in May, 0.91 sen/kWh in June, and 0.08 sen/kWh in July 2026.
