TNB AFA price August 2026 set at +3.80 sen/kWh – A-Z Eventz

The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) price for August 2026 has been set at +3.80 sen per kWh, which is up barely from +3.59 sen/kWh in July 2026.

Fuel price stress eased this month. The pre-subsidy AFA for August is 4.28 sen/kWh (RM452 million), down from 5.55 sen/kWh (RM583 million) in July. The efficient price shoppers pay ticked up as a result of the Kumpulan Wang Industri Elektrik (KWIE) fund cushioned much less of the fee this time.

In August, KWIE coated 11% of the elevated price (RM51 million, equal to 0.48 sen/kWh), in comparison with the 35% (RM206 million, or 1.96 sen/kWh) it absorbed in July.

This is the fourth consecutive month that AFA has been constructive, and the fourth month that KWIE has subsidised the AFA surcharge – although the dimensions of the cushion has swung round significantly, from RM91 million in May to RM87 million in June, RM206 million in July, and now simply RM51 million.

When the July price was revealed, TNB’s three-month outlook had pencilled in +8.33 sen/kWh for August – greater than double the +3.80 sen/kWh that has truly been set.

Even earlier than the KWIE subsidy is counted, the pre-mitigation price of +4.28 sen/kWh got here in at barely half that projection. As TNB itself notes, the outlook is an estimate to assist clients plan, and the eventual determine is steadily decrease as soon as precise gasoline prices, the true-up and the KWIE subsidy are reconciled.

Looking forward, TNB’s newest three-month projection (up to date as of July 31, 2026) has additionally been revised down from the earlier outlook: +5.00 sen/kWh for September 2026, +6.81 sen/kWh for October, and +7.50 sen/kWh for November.

The development remains to be upward, however noticeably softer than the +8 sen/kWh-plus figures floated a month in the past. Do keep in mind that the precise AFA paid might once more are available in decrease than these projections if KWIE assist continues.

The gasoline worth image

According to Single Buyer’s web site), gasoline costs in August 2026 stay greater than the baseline costs utilized in tariff setting – which is why a surcharge nonetheless applies – however the extra over baseline is smaller than July’s.

The massive mover was Tier 2 fuel, which fell sharply to 60.42 RM/mmBTU from 75.58 RM/mmBTU in July (Base worth: 46 RM/mmBTU). Tier 1 fuel truly rose to 31.71 RM/mmBTU from 27.00 in July, although it stays beneath its 35 RM/mmBTU base, and coal additionally climbed, to 131.71 USD/MT from 122.37 USD/MT (Base worth: 97 USD/MT). With the ringgit weakening barely to 4.0557 RM/USD for August – from 3.9455 in July, although nonetheless firmer than the 4.307 base price – that coal worth works out to 24.48 RM/mmBTU in ringgit phrases (Base worth: 19.14 RM/mmBTU).

The steep Tier 2 fuel decline, along with a a lot milder true-up this month (extra on that beneath), outweighed pricier coal to tug the pre-subsidy adjustment down from July’s RM583 million to RM452 million.

The May 2026 true-up

Part of every month’s AFA is a ‘true-up’ that reconciles precise technology prices from a couple of months earlier towards what was forecast. For August, that reconciliation covers May 2026 – and in contrast to the hefty April true-up that helped inflate July’s price (a 16% price overrun amid document peak demand), May’s was gentle.

Single Buyer studies that turbines operated effectively in May, with alternate gasoline (distillate) wanted for simply someday throughout the month. Actual technology prices got here in just one% above forecast, pushed by a mix of lower-than-expected electrical energy gross sales and better output from coal, fuel, hydro and photo voltaic. That modest overrun contributed solely a small upward adjustment to the August AFA.

What is Automatic Fuel Adjustment (AFA)?

AFA is a element of your electrical energy invoice. To recap, AFA replaces the earlier Imbalance Cost Pass-Through (ICPT) and is robotically calculated as both a surcharge or low cost of as much as 3 sen/kWh relying on gasoline costs – that is revised month-to-month, with any bigger adjustments (past 3 sen) requiring cupboard approval.

That 3 sen threshold may be very a lot in play proper now. The computed AFA has exceeded the automated band for 3 months operating – 3.44 sen in June, 5.55 sen in July and now 4.28 sen in August – and when that occurs, the Energy Commission refers the matter to the federal government, which decides how a lot of the fee is handed by way of to shoppers. The break up between what KWIE absorbs and what lands in your invoice because the efficient price displays that call.

Introduced as a part of the Electricity Tariff Restructuring that took impact from July 1, 2025, the AFA is one in every of 5 parts or ‘charges’ used to calculate your electrical energy invoice:

• Generation cost: 27.03 sen/kWh for whole consumption of 1,500 kWh and beneath monthly or 37.03 sen/kWh for whole consumption greater than 1,500 kWh monthly. This covers the precise price of producing electrical energy from energy vegetation.
• Capacity cost: 4.55 sen/kWh. This covers the price of sustaining adequate electrical energy provide capability.
• Network cost: 12.85 sen/kWh. This covers the price of working and sustaining the grid and the native community to ship electrical energy.
• Retail cost: RM10/month; waived for whole consumption of 600 kWh and beneath a month. This is a set price for metering, billing and customer support.
• AFA price: +3.80 sen/kWh for the month of August 2026; waived for whole consumption of 600 kWh and beneath a month.

You can use our TNB Bill Calculator device to get a tough estimate on how a lot your electrical energy invoice will likely be for the month. Essentially, in case you use over 1,500 kWh a month, you add the technology, capability and community expenses (totalling 54.43 sen/kWh) to retail cost (RM10) and the AFA price (+3.80 sen/kWh for August 2026; constructive quantity, so it’s a surcharge).

Alternatively, in case your utilization is beneath 1,500 kWh a month, it’s 44.43 sen/kWh plus the retail cost and AFA price. For whole consumption of 600 kWh and beneath a month, it will solely be 44.43 sen/kWh – retail and AFA expenses are waived.

Here’s an inventory of the month-to-month AFA charges to date:

• 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

Domestic shoppers who use lower than 1,000 kWh a month can take pleasure in a reduction known as ‘Insentif Cekap Tenaga‘ or ‘Energy Efficiency Incentive’. The low cost supplied is relative to consumption (greater utilization, decrease incentive), with the utmost low cost being 25 sen/kWh.

Domestic customers who’ve good meters even have the choice to enter the Time of Use (ToU) scheme, permitting them to alter their electrical energy utilization patterns and make the most of decrease tariff charges throughout off-peak hours to take pleasure in financial savings on their month-to-month invoice.

The scheme has two time zones, with off-peak timings being from 10pm to 2pm from Monday to Friday and all through the day (24 hours) for weekends. Peak hours are from 2pm to 10pm on weekdays. Here are the power expenses below this scheme:

For utilization of 1,500 kWh and beneath monthly

• Peak tariff: 28.52 sen per kWh
• Off-peak tariff: 24.43 sen per kWh

For utilization above 1,500 kWh monthly

• Peak tariff: 38.52 sen per kWh
• Off-peak tariff: 34.43 sen per kWh

Is there a strategy to escape from paying AFA?

Yes truly, there are two methods.

Firstly, you should utilize much less electrical energy. AFA is waived for whole consumption of 600 kWh and beneath a month.

Secondly, there’s something known as Green Energy Tariff (GET) which you’ll be able to go for. This exempts you from AFA – and, since August 1, 2025, from the 1.6% renewable power fund (KWTBB) levy too – on the inexperienced items you subscribe.

However, GET itself prices 5 sen/kWh in case you lock in for a 1 12 months subscription, 4 sen/kWh for two years, and three sen/kWh for 3 years, thus it solely makes financial sense to subscribe to it if AFA is greater than what GET prices throughout the whole interval that you simply subscribe it for.