Emit Solar | Home Solar Panels | Easy Ownership
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.
AFA (Automatic Fuel Adjustment) is the difference between what fuel was expected to cost – and what it actually costs.
If fuel gets
cheaper
You pay less
If fuel gets
more expensive
You pay more
Simple in theory. Messy in practice.
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.
Every sen you pay breaks down into three parts.
Below 1500kWh
Energy (fuel)
largest component
27.03
sen/kWh
61%
Capacity
keeping power plants ready
4.55
sen/kWh
10%
Network
delivering electricity
12.85
sen/kWh
29%
Total
44.43
sen/kWh
Over 1500kWh
Energy (fuel)
largest component
37.03
sen/kWh
68%
Capacity
keeping power plants ready
4.55
sen/kWh
8%
Network
delivering electricity
12.85
sen/kWh
24%
Total
54.43
sen/kWh
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.
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.
When the current tariff was set, planners locked in numbers for coal prices and the exchange rate.
Here’s what actually happened:
Coal (USD/tonne)
Assumed
97.00
Jun ’25
99.93
Sep ’25
98.53
Dec ’25
104.98
Marc ’24
103.33
MYR / USD
Assumed
4.29
Jun ’25
4.41
Sep ’25
4.31
Dec ’25
4.22
Marc ’24
4.06
Coal (MYR equivalent)
Assumed
416.13
Jun ’25
440.69
Sep ’25
424.66
Dec ’25
443.02
Marc ’24
419.52
Coal (MYR equivalent)
Assumed
35.00
Jun ’25
34.84
Sep ’25
34.46
Dec ’25
32.25
Marc ’24
30.05
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.
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.
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:
Used
600kWh
→
Your TNB Bill
RM215.98
Used
601kWh
→
Your TNB Bill
RM182.78
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.
We feel the better version of this system would smooth these swings: Save during good times and cushion during bad times.
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.
Check My Savings →