TNB explains automatic fuel adjustment's role in electricity bill changes

Tenaga Nasional Bhd responded to consumer concerns by stating that the automatic fuel adjustment (AFA) does not trigger abrupt increases in electricity bills. AFA adjusts charges based on fluctuations in global fuel prices and foreign-exchange rates, providing rebates when costs decline and adding a surcharge when they rise. The surcharge, set at 3.67 sen per kilowatt-hour, has been applied since May 2026 following a crisis in the Middle East.

Since the tariff revision, consumers have received AFA rebates for nine consecutive months, from August 2025 to April 2026. Overall, the utility reports RM3.1 billion in rebates compared with RM0.8 billion in surcharges. The government has contributed an additional RM435 million through the Electricity Industry Fund to lessen the surcharge impact, and households using up to 600 kWh per month are exempt from AFA charges, service tax, and retail fees.