The Energy Commission’s (ST) Automatic Fuel Adjustment (AFA) price for October 2026 has been set at +3.61 sen per kWh, down marginally from +3.67 sen/kWh in September 2026.
According to Single Buyer, the AFA for October quantities to a surcharge of RM391 million, up from RM375 million in September – however unfold over larger electrical energy demand, that works out to a barely decrease per-kWh price.
This is the sixth consecutive month that AFA has been optimistic, and the computed price has now exceeded the three sen/kWh computerized band for 5 months operating. Under the federal government’s short-term expanded safety, home customers consuming 800 kWh and under a month are exempted from AFA, the retail cost and SST till December 31, 2026.
The new three-month outlook has turned upward: +4.27 sen/kWh for November, +4.46 sen/kWh for December and +7.59 sen/kWh for January 2027. November has been revised up from the +2.81 sen/kWh projected a month in the past, whereas December has come down from +5.48 sen/kWh. If the January projection holds, it might be the best AFA surcharge because the mechanism was launched in July 2025 – and it might land within the very month the 800 kWh safety lapses and the brink reverts to 600 kWh.
As all the time, TNB notes that the outlook is an estimate to assist prospects plan, and the eventual determine is dependent upon precise gasoline prices, the true-up and any KWIE assist.
The gasoline worth image
Fuel costs edged up in October and stay above the baselines utilized in tariff setting, which is why a surcharge nonetheless applies. Tier 2 fuel rose to 58.92 RM/mmBTU from 57.87 RM/mmBTU in September (base worth: 46 RM/mmBTU), whereas Tier 1 fuel climbed to 32.68 RM/mmBTU from 31.71, nonetheless under its 35 RM/mmBTU base. Coal was up barely at 123.76 USD/MT from 122.85 USD/MT (base worth: 97 USD/MT); the ringgit firmed a contact to 4.0834 RM/USD from 4.0944 (nonetheless firmer than the 4.307 base price), placing coal at 23.16 RM/mmBTU in ringgit phrases (base worth: 19.14 RM/mmBTU).
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 modifications (past 3 sen) requiring cupboard approval.
That 3 sen threshold stays very a lot in play. The computed AFA has exceeded the automated band for 5 months operating – 3.44 sen in June, 5.55 sen in July, 4.28 sen in August, 3.67 sen in September and now 3.61 sen in October – 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 shoppers.
Introduced as a part of the Electricity Tariff Restructuring that took impact from July 1, 2025, the AFA is certainly one 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 under per 30 days or 37.03 sen/kWh for whole consumption greater than 1,500 kWh per 30 days. This covers the precise price of producing electrical energy from energy crops.
- 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 800 kWh and under a month till December 2026 (600 kWh and under from January 2027). This is a hard and fast price for metering, billing and customer support.
- AFA price: +3.61 sen/kWh for the month of October 2026; waived for whole consumption of 800 kWh and under a month till December 2026 (600 kWh and under from January 2027).
Essentially, if you happen to use over 1,500 kWh a month, you add the technology, capability and community expenses (totalling 54.43 sen/kWh) to the retail cost (RM10) and the AFA price (+3.61 sen/kWh for October 2026; optimistic quantity, so it’s a surcharge).
Alternatively, in case your utilization is under 1,500 kWh a month, it’s 44.43 sen/kWh plus the retail cost and AFA price. For whole consumption of 800 kWh and under a month till the tip of this yr, it might solely be 44.43 sen/kWh – retail and AFA expenses 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
- October 2026: +3.61 sen/kWh
Domestic shoppers who use lower than 1,000 kWh a month can get pleasure from a reduction referred to as ‘Insentif Cekap Tenaga‘ or ‘Energy Efficiency Incentive’. The low cost supplied is relative to consumption (larger 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 vary 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 expenses underneath this scheme:
For utilization of 1,500 kWh and under per 30 days
- Peak tariff: 28.52 sen per kWh
- Off-peak tariff: 24.43 sen per kWh
For utilization above 1,500 kWh per 30 days
- Peak tariff: 38.52 sen per kWh
- Off-peak tariff: 34.43 sen per kWh
Is there a method 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 800 kWh and under a month till December 31, 2026, after which the brink reverts to 600 kWh.
Secondly, there’s something referred to 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 if you happen to lock in for a 1 yr 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 all the interval that you simply subscribe it for.
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