What impact did the AFA have on Peninsular Malaysia electricity tariffs?

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The Automatic Fuel Adjustment Affected Peninsular Malaysia Electricity Tariffs for High-Consumption Domestic Users

In May 2026, the implementation of the Automatic Fuel Adjustment (AFA) revised rate led to an increase in electricity tariffs for domestic users in Peninsular Malaysia who consumed more than 600 kilowatt hours (kWh). This adjustment specifically affected the average electricity tariff compared to the preceding period, while users with consumption at or below 600 kWh remained unaffected by this particular change.
AFA Rate Shifted to a Surcharge in May 2026

The Energy Commission established the AFA rate for May 1-31, 2026, as a surcharge of 1.38 sen per kWh. This marked a significant shift from the previous month, April 1-30, 2026, when a rebate of 0.47 sen per kWh was in effect. This change in the AFA mechanism directly contributed to the revised electricity charges for eligible consumers.
Increased Electricity Costs for Over 600 kWh Consumers

The imposition of the 1.38 sen/kWh surcharge in May directly translated to higher electricity bills for Peninsular Malaysia's domestic consumers exceeding the 600 kWh threshold. This rate was applied on top of the standard electricity charges, thus impacting the overall cost of electricity for these households during that month.
Lower Consumption Brackets Remained Unaffected

Crucially, the Statistics Department Malaysia (DOSM) noted that domestic users whose electricity consumption remained at or below 600 kWh were not subject to the AFA revised rate. This distinction ensured that the tariff adjustment did not impact a broad segment of the domestic user base, safeguarding those with lower energy usage from the increased costs.

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What impact did the AFA have on Peninsular Malaysia electricity tariffs?

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