Households in Peninsular Malaysia can look forward to a slight reduction in their TNB electricity bills for August 2025, as the Energy Commission (ST) has declared a rebate of 1.45 sen per kWh.
The rebate is given based on the upcoming Automatic Fuel Adjustment (AFA) rate declared for the period between 1st to 31st August 2025. As a comparison, the AFA for the current period between 1st to 31st July is set at 0.00 sen per kWh.
AFA rebate of 1.45 sen per kWh for August 2025
In case you missed it, the AFA is a replacement of the previous Imbalance Cost Pass‑Through (ICPT) mechanism, which adjusts cost based on fuel and other generation-related expenses, as well as current foreign exchange rates. The previous ICPT mechanism is adjusted every 6 months while AFA is updated on a monthly basis.
The AFA is introduced as part of the new electricity tariff restructuring for West Malaysia which took effect from 1st July 2025.
If the cost of power generation goes down, the AFA rate will be reflected as a rebate. However, if the cost goes up, the AFA rate will be reflected as a surcharge.
Do note that the AFA is exempted for domestic users with a total monthly consumption of 600kWh and below.
AFA Rebates forecast for September, October and November
To help users better manage their electricity usage and budget, TNB has also shared the forecasted AFA rate for the subsequent three months (September to November 2025). Based on the forecast, users can also expect to enjoy AFA rebates as much as 2.65 sen per kWh for October 2025.
Here’s a recap of the AFA rates so far:
- July 2025: 0.00 sen per kWh
- August 2025: -1.45 sen per kWh
- September 2025: -1.23 sen per kWh*
- October 2025: -2.65 sen per kWh*
- November 2025: -1.95 sen per kWh*
*Shown AFA rates for September to November 2025 are forecast figures
Understanding your TNB Bill
Following the recent restructuring, your TNB bill will have a different breakdown starting from 1st July 2025. The electricity bill will be itemised for Energy Charge, Capacity Charge, Network Charge and Retail Charge as shown above.
Domestic consumers who consume 600kWh and below, are exempted from Retail and AFA charges.
To encourage efficient use of electricity, the Energy Commission has also introduced an Energy Efficiency Incentive (EEI) which rewards lower electricity consumption users (1000kWh and below) with rebates as high as 25 sen per kWh. The more you use, the lower the rebate you’ll receive for the total consumption per month as shown below.
As announced in June, TNB says over 23 million consumers are guaranteed to remain unaffected by the new Electricity Tariff Restructuring. You can also view the electricity calculator on TNB’s portal which now also includes ToU (Time of Use) and NEM scenarios.
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