Electricity

Your TNB Bill & Geopolitics

Your electricity bill isn’t just about how much you use.It’s a live feed of global energy chaos – coal markets, currency swings, and distant wars.

That’s where AFA comes in.

What is AFA?

AFA (Automatic Fuel Adjustment) is the difference between what fuel was expected to cost – and what it actually costs.

Simple in theory. Messy in practice.

Why AFA Exists

Before AFA, we had ICPT – which also adjusted for fuel costs, but not consistently. Some households got discounts, while others paid surcharges, even when the underlying cost per kWh was identical for both. The gap was covered through government subsidies.

With AFA:

Fuel cost adjustments are applied more consistently
Pricing is more direct and transparent

it’s the cleaner fix – and it’s here to stay.

Ask to see physical copies of all three. A legitimate, professional company will present them without hesitation. If a company can’t or won’t show you their licences, walk away – no matter how attractive the quote.

Where Your Money Actually Goes

Every sen you pay breaks down into three parts.

Component	Under 1,500 kWH	Over 1,500 kWH
Energy (fuel)	27.03 sen/kWh (61%)	37.03 sen/kWh (68%)
Capacity	4.55 sen/kWh (10%)	4.55 sen/kWh (8%)
Network	12.85 sen/kWh (29%)	12.85 sen/kWh (24%)
Total	44.43 sen/kWh	54.43 sen/kWh

Only one of these moves: Fuel. And it’s the big one. That’s the part that AFA adjusts.

And because fuel is globally priced:

"Your electricity bill is now tied to global markets."

92.4% of Our Electricity Is at the Mercy of Global Markets

Coal and gas. That’s what powers Malaysia.

Coal

58.8%

of our electricity

Gas (LNG)

33.6%

of our electricity

Total Exposure

92.4%

tied to global prices

Malaysia’s Monthly Generation Mix, March 2026. Source: Single Buyer.

And both are priced in USD on global commodity exchanges. Every time the Ringgit weakens or a conflict disrupts supply, it hits your pockets.

“ The real test of a solar company isn’t the day they install your system – it’s the day something goes wrong. ”

How Far Off Were the Assumptions?

When the current tariff was set, planners locked in numbers for coal prices and the exchange rate.

Here’s what actually happened:

Metric	Assumed	Jun ’25	Sep ’25	Dec ’25	Mar ’25
Coals (USD/Tonne)	97.00	99.93	98.53	104.98	103.33
MYR/USD	4.29	4.41	4.31	4.22	4.06
Coal (MYR equiv.)	416.13	440.69	424.66	443.02	419.52
LNG (MYR/mmBTU)	35.00	34.84	34.46	32.25	30.05

Malaysia’s Generation Tariff. Source: Single Buyer.

Coal prices moved above assumptions
Currency shifted
Fuel costs fluctuated

When assumptions are off, AFA comes in to adjust the prices.

Why the Discount Is Shrinking

For a while, AFA worked in your favour.

Stronger Ringgit
Global glut of coal and gas
Lower-than-expected costs

You got a discount. But it’s reversing.

Geopolitical tensions are squeezing supply. Coal prices are above the assumed level. The AFA discount is getting smaller – and may flip to a surcharge.

The concern isn’t just price: it’s availability. There’s a real scenario where countries have the money to buy fuel but nobody will sell. With all these uncertainties, countries may also buy more to hoard supply as strategic reserves.

The Bill Glitch Nobody Talks About

Not everyone is exposed to AFA in the same way.

Households using below 600 kWh are excluded – no discount when fuel prices drop, no surcharge when it rises. The result? A cliff edge.

At the peak AFA discount in November 2025:

One extra unit of electricity. Thirty-three ringgit cheaper.

AFA is meant to reflect the true cost of electricity. But in practice, some users are shielded while others are fully exposed. So the signal isn’t perfectly clean.

The Honest Scorecard

What Works

Fully transparent – all the inputs are public data
Forces real energy literacy on all of us
Tracks actual costs more honestly than ICPT did

What Doesn’t Work

One war, one storm, one bad quarter – your bill moves
Prices go up fast; they never quite come back down
The 600 kWh cliff

We feel the better version of this system would smooth these swings: Save during good times and cushion during bad times.

Want to reduce your exposure to AFA?

The less electricity you buy from TNB, the less global prices affect your bill. Click the button below to see how much solar can help.

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