Tenaga Nasional Berhad (TNB) has stated that the Automatic Fuel Adjustment (AFA) rate for the month of February 2026 is -2.77 sen/kWh, compared to -4.99 sen/kWh in January 2026. The AFA, which is set by the Energy Commission (ST), replaces the previous Imbalance Cost Pass-Through (ICPT) and is automatically calculated as a surcharge or discount of up to 3 sen/kWh depending on fuel prices – this is reviewed monthly, with larger changes (over 3 sen) requiring Cabinet approval.
Introduced as part of TNB’s electricity tariff restructuring, which came into effect on July 1, 2025, the AFA is one of five components or ‘charges’ used to calculate your electricity bill. Here’s the overview:
- Generation costs: 27.03 sen/kWh for a total consumption of 1,500 kWh and less per month or 37.03 sen/kWh for a total consumption of more than 1,500 kWh per month. This covers the actual costs of generating electricity from power stations.
- Capacity charging: 4.55 sen/kWh. This covers the costs of maintaining sufficient electricity supply capacity.
- Network costs: 12.85 sen/kWh. This covers the costs of operating and maintaining the electricity grid and the local network for the supply of electricity.
- Selling fee: RM10/month; apart from a total consumption of 600 kWh and less than a month. These are fixed costs for metering, billing and customer service.
- AFA rate: -2.77 sen for the month of February 2026; apart from a total consumption of 600 kWh and less than a month.
You can use our TNB Bill Calculator tool to get a rough estimate of how much your electricity bill will be for the month. If you consume more than 1,500 kWh per month, you essentially add the generation, capacity and network charges (totaling 54.43 sen/kWh) to the retail charge (RM10) and the AFA tariff (-2.77 sen/kWh discount for February 2026).
If your consumption is less than 1,500 kWh per month, this is 44.43 sen/kWh plus the retail costs and the AFA rate. For a total consumption of 600 kWh and less than a month, this would be only 44.43 sen/kWh – retail and AFA charges are waived.


Here is a list of the monthly AFA rates to date:
- July 2025: 0.00 sen/kWh
- August 2025: -1.45 sen/kWh
- September 2025: -1.10 sen/kWh
- October 2025: -6.50 sen/kWh
- November 2025: -8.91 sen/kWh
- December 2025: -6.42 sen/kWh
- January 2026: -4.99 sen/kWh
- February 2026: -2.77 sen/kWh
Household consumers who consume less than 1,000 kWh per month can enjoy a discount called ‘Incentive for energy efficiency‘ or ‘incentive for energy efficiency’. The discount offered is related to consumption (the more use, the smaller the incentive), with the maximum discount being 25 sen/kWh.
Domestic users with smart meters also have the option to participate in the Time of Use (ToU) scheme, which allows them to change their electricity consumption patterns and benefit from a lower tariff during off-peak hours to enjoy savings on their monthly bill.
The schedule has two time zones, with off-peak times from 10:00 PM to 2:00 PM Monday to Friday and during the day (24 hours) on weekends. Peak hours are on weekdays from 2:00 PM to 10:00 PM. These are the energy costs under this scheme:
For a consumption of 1,500 kWh and less per month
- Peak rate: 28.52 sen per kWh
- Off-peak rate: 24.43 sen per kWh
For consumption above 1,500 kWh per month
- Peak rate: 38.52 sen per kWh
- Off-peak rate: 34.43 sen per kWh
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