Which Malaysian household consumers are exempt from AFA surcharges?

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Malaysian Household Consumers Exempt from AFA Surcharges

Approximately 85% of domestic customers who consume 600 kWh or less per month are exempt from the Automatic Fuel Adjustment (AFA) surcharge. Additionally, households consuming 300 kWh or less per month are also exempt from charges related to the renewable energy fund. These exemptions are part of measures to shield a significant portion of residential consumers from fluctuations in electricity generation costs.
Exemption Thresholds for Domestic Consumers

The primary exemption from the AFA applies to domestic customers whose monthly electricity consumption does not exceed 600 kWh. This threshold ensures that the majority of households, particularly those with lower energy usage, are not impacted by the AFA, which reflects changes in fuel and generation expenses. This policy aims to maintain affordability for a broad segment of the Malaysian population.
Renewable Energy Fund Exemption

Beyond the AFA exemption, a further relief is provided for households with even lower consumption levels. Consumers who use 300 kWh or less per month are specifically exempted from contributing to the renewable energy fund. This dual exemption structure targets support towards a wider range of low-usage households, addressing different components of electricity charges.
Impact of Exemptions on Bill Components

The AFA is one of three components listed on a Tenaga Nasional Berhad (TNB) bill, alongside the Energy Charge (for generation fuel) and the Capacity Charge (for power purchase agreements). For the approximately 85% of domestic customers within the 600 kWh monthly limit, the AFA, retail charges, and 8% SST are waived. This means their bills are shielded from the volatility associated with fuel price and foreign exchange rate adjustments.
Mitigation Measures for Higher Consumption

While specific thresholds grant full exemption, a RM206 million contribution from the Electricity Industry Fund (Kumpulan Wang Industri Elektrik) was used to mitigate the increase in the AFA for July 2026. This fund acts as a targeted subsidy, absorbing a portion of the rise in fuel costs and providing relief to consumers, even those who may exceed the primary exemption limits but are still subject to the AFA.

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Which Malaysian household consumers are exempt from AFA surcharges?

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