TNB AFA charge September 2026 set at +3.67 sen/kWh – A-Z Eventz

The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) charge for September 2026 has been set at +3.67 sen per kWh, down barely from +3.80 sen/kWh in August 2026.

The underlying value strain continues to ease. According to Single Buyer, the AFA for September is 3.67 sen/kWh (RM375 million), down 14% from 4.28 sen/kWh (RM452 million) in August – and the second straight month the computed surcharge has fallen. Unlike in earlier months, we might discover no point out of any Kumpulan Wang Industri Elektrik (KWIE) subsidy in any announcement this time.

This is the fifth consecutive month that AFA has been constructive. The KWIE cushion has swung round significantly over that stretch – RM91 million in May, RM87 million in June, RM206 million in July, RM51 million in August, however we’ve got no point out of it this month.

Once once more, the sooner projections overshot. When the August charge was printed, TNB’s three-month outlook pencilled in +5.00 sen/kWh for September – but the pre-subsidy determine got here in at simply 3.67 sen/kWh, earlier than any KWIE assist is counted. As TNB itself notes, the outlook is an estimate to assist clients plan, and the eventual determine is continuously decrease as soon as precise gasoline prices, the true-up and the KWIE subsidy are reconciled.

Looking forward, TNB’s newest three-month projection has been revised down sharply as soon as extra: the AFA outlook is now +3.36 sen/kWh for October, +2.81 sen/kWh for November and +5.48 sen/kWh for December – a marked retreat from the +6.81 and +7.50 sen/kWh floated for October and November only a month in the past. The near-term development is lastly pointing down, although the December determine suggests the reprieve could not final via year-end.

The gasoline worth image

Fuel costs in September stay above the baselines utilized in tariff setting – which is why a surcharge nonetheless applies – however the hole continues to slim. Tier 2 fuel fell once more to 57.87 RM/mmBTU from 60.42 RM/mmBTU in August (base worth: 46 RM/mmBTU), whereas Tier 1 fuel held at 31.71 RM/mmBTU, nonetheless beneath its 35 RM/mmBTU base. Coal retreated to 122.85 USD/MT from 131.71 USD/MT (base worth: 97 USD/MT), and though the ringgit weakened barely to 4.0944 RM/USD from 4.0557 (nonetheless firmer than the 4.307 base charge), the coal worth works out to a decrease 23.05 RM/mmBTU in ringgit phrases (base worth: 19.14 RM/mmBTU).

What is Automatic Fuel Adjustment (AFA)?

AFA is a part of your electrical energy invoice. To recap, AFA replaces the earlier Imbalance Cost Pass-Through (ICPT) and is routinely 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 modifications (past 3 sen) requiring cupboard approval.

That 3 sen threshold could be very a lot in play proper now. The computed AFA has exceeded the automated band for 4 months operating – 3.44 sen in June, 5.55 sen in July, 4.28 sen in August and now 3.67 sen in September – and when that occurs, the Energy Commission refers the matter to the federal government, which decides how a lot of the price is handed via to customers. The cut up between what KWIE absorbs and what lands in your invoice because the efficient charge displays that call.

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

• Generation cost: 27.03 sen/kWh for complete consumption of 1,500 kWh and beneath per thirty days or 37.03 sen/kWh for complete consumption greater than 1,500 kWh per thirty days. This covers the precise value of producing electrical energy from energy vegetation.
• Capacity cost: 4.55 sen/kWh. This covers the price of sustaining ample 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 complete consumption of 600 kWh and beneath a month. This is a hard and fast value for metering, billing and customer support.
• AFA charge: +3.67 sen/kWh for the month of September 2026; waived for complete consumption of 600 kWh and beneath a month.

You can use our TNB Bill Calculator instrument to get a tough estimate on how a lot your electrical energy invoice will likely be for the month. Essentially, in the event you use over 1,500 kWh a month, you add the technology, capability and community costs (totalling 54.43 sen/kWh) to retail cost (RM10) and the AFA charge (+3.67 sen/kWh for September 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 charge. For complete consumption of 600 kWh and beneath a month, it could solely be 44.43 sen/kWh – retail and AFA costs are waived.

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

• 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
• September 2026: +3.67 sen/kWh

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

Domestic customers who’ve sensible meters even have the choice to enter the Time of Use (ToU) scheme, permitting them to alter their electrical energy utilization patterns and benefit from decrease tariff charges throughout off-peak hours to get pleasure from 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 vitality costs below this scheme:

For utilization of 1,500 kWh and beneath per thirty days

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

For utilization above 1,500 kWh per thirty days

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

Is there a solution to escape from paying AFA?

Yes really, there are two methods.

Firstly, you should utilize much less electrical energy. AFA is waived for complete 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 vitality fund (KWTBB) levy too – on the inexperienced models you subscribe.

However, GET itself prices 5 sen/kWh in the event 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 your complete interval that you just subscribe it for.