Why Is Your TNB Bill Getting Higher Even Though You Didn't Use More Electricity?

Have you noticed your TNB electricity bill increasing recently even though your family's electricity usage hasn't changed much?

You're not alone.

Since July 2025, Malaysia has introduced the Automatic Fuel Adjustment (AFA) mechanism under the new electricity tariff framework. Unlike the previous ICPT system, the AFA is reviewed and updated every month based on the actual cost of generating electricity.

This means your electricity bill can go up or down every month, even if your usage stays exactly the same.

Let's take a closer look at how the AFA has changed over the past 14 months and what it means for Malaysian homeowners.

 

What is the TNB Automatic Fuel Adjustment (AFA)?

The Automatic Fuel Adjustment (AFA) is a monthly tariff adjustment that reflects changes in electricity generation costs.

The adjustment is influenced by several factors, including:

• Coal prices
• Natural gas prices
• Foreign exchange (USD/MYR) movements
• Other fuel and generation costs

When generation costs are lower than the tariff baseline, consumers receive an AFA rebate.

When generation costs increase, consumers pay an AFA surcharge.

Unlike the previous ICPT mechanism, AFA is updated every month, meaning your electricity bill can fluctuate more frequently.

Malaysia's AFA Trend (July 2025 – August 2026)

The first few months after AFA was introduced brought good news for consumers, with several months of rebates.

However, as global fuel prices increased, the AFA gradually shifted from rebates to surcharges.

Key Highlights

✅ Highest rebate:
November 2025 (-8.91 sen/kWh)

⚠️ Highest surcharge:
August 2026 (+8.33 sen/kWh)

📈 Total movement:
17.24 sen/kWh in just 14 months.

This illustrates how quickly fuel-related costs can change and how those changes affect electricity charges.

Example: How Much Difference Can AFA Make?

Let's compare two months using the same electricity consumption.

Monthly electricity usage: 900 kWh

November 2025

AFA Rate:
-8.91 sen/kWh

AFA Adjustment:
-RM80.19

August 2026

AFA Rate:
+8.33 sen/kWh

AFA Adjustment:
+RM74.97

Difference

For the same 900 kWh of electricity, the AFA component changes by approximately:

RM155.16

This example demonstrates how the monthly AFA alone can materially affect a household's electricity bill. Your actual bill will also include other applicable tariff components.

Why Are Electricity Bills Becoming Less Predictable?

Many homeowners assume their electricity bill depends only on how much electricity they use.

Today, that's no longer the whole picture.

Several factors outside your control can influence your monthly bill, including:

• International coal prices
• Natural gas prices
• Currency exchange rates
• Electricity generation costs
• Monthly AFA adjustments

Even if your family uses exactly the same amount of electricity every month, the total amount payable may still change.

How Can Homeowners Reduce the Impact of Rising Electricity Costs?

While no one can control global fuel prices, homeowners can reduce their dependence on electricity purchased from the grid.

One of the most effective long-term solutions is installing a solar photovoltaic (PV) system.

By generating electricity from your own rooftop, you can:

• Reduce your monthly TNB bill
• Lower your exposure to future AFA surcharges
• Produce clean renewable energy
• Increase long-term savings
• Improve your home's energy independence

For many homeowners, solar provides greater certainty over future electricity costs compared with relying entirely on grid electricity.

Is Solar Worth It?

If your monthly TNB bill is around RM400 or more, installing solar could significantly reduce the amount of electricity you purchase from TNB.

Combined with available government incentives such as the SuRIA Home Rebate Programme (subject to eligibility and available allocation), going solar can become even more attractive for eligible homeowners.

Every home is different, so it's important to have your electricity usage assessed before deciding on the right system size.

Final Thoughts

The AFA trend from July 2025 to August 2026 shows how rapidly electricity-related charges can change.

In just 14 months, the adjustment moved from a -8.91 sen/kWh rebate to a +8.33 sen/kWh surcharge—a swing of 17.24 sen/kWh.

While homeowners cannot control fuel prices or monthly tariff adjustments, they can take steps to reduce their reliance on grid electricity.

If you're looking for greater control over your long-term electricity costs, now is a good time to explore whether solar is the right solution for your home.