How did the AFA change electricity costs for Peninsular domestic users?

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Automatic Fuel Adjustment Increased Electricity Costs for Some Peninsular Domestic Users

The automatic fuel adjustment (AFA) revised rate led to increased electricity costs for domestic users in Peninsular Malaysia who consumed more than 600 kilowatt hours (kWh) in May 2026. For the period of May 1 to May 31, 2026, the Energy Commission set the AFA rate at a surcharge of 1.38 sen/kWh. This contrasts with the preceding month, April 1 to April 30, 2026, which had a rebate of 0.47 sen/kWh.
AFA Surcharge Implemented in May 2026

The Energy Commission's decision to implement a surcharge of 1.38 sen/kWh for May 2026 marked a significant shift from the rebate offered in April. This adjustment specifically targeted domestic consumers exceeding a 600 kWh threshold in Peninsular Malaysia, directly impacting their monthly electricity bills.
Impact on Average Electricity Tariff

This AFA revision influenced the average electricity tariff, causing an increase compared to the previous billing period. The Statistics Department Malaysia noted that this adjustment led to a rise in the housing, water, electricity, gas, and other fuels component of the Consumer Price Index (CPI), which stood at 1.2 per cent in May 2026, up from 1.1 per cent in April 2026.
Unaffected Consumers

Crucially, domestic users with a monthly electricity consumption of 600 kWh or less remained unaffected by the AFA surcharge. Their electricity costs were not impacted by this specific adjustment, ensuring that lower-usage households continued to be shielded from the increased rates.

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How did the AFA change electricity costs for Peninsular domestic users?

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