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Prime Minister Datuk Seri Anwar Ibrahim said the government will hold a special meeting today, 17 September, to discuss immediate measures to ease the impact of rising electricity bills on Malaysian households
In a statement yesterday, 16 September, Anwar said the government had taken note of public concerns over higher electricity bills in recent weeks.
"Upon returning from India and the Maldives, my attention immediately turned to concerns raised by the people regarding the recent increase in electricity bills.
"I have heard the concerns being raised, and this matter needs to be given attention and addressed immediately," he said.
Anwar said around 80% of domestic consumers who use no more than 600kWh of electricity a month usually remain protected from rate increases linked to higher fuel costs
However, he said the recent haze and hotter weather has led some households to increase their electricity consumption, causing their monthly usage to exceed the 600kWh threshold.
These households would consequently be subject to the Automatic Fuel Adjustment (AFA).
"Therefore, the government will hold a special meeting with the Ministry of Energy Transition and Water Transformation, the Energy Commission, Tenaga Nasional Berhad (TNB), and the Ministry of Finance to examine immediate mitigation measures to reduce the impact of the increase in electricity bills on affected households," he said.
Anwar, who is also Finance Minister, said the government would continue to ensure that targeted subsidy measures are implemented fairly and reasonably, with the people's welfare remaining a priority.
The AFA mechanism was introduced by TNB in July 2025 to account for changes in global fuel prices and foreign exchange rates
According to TNB's website, 85% of domestic consumers using 600kWh or less a month are exempt from the AFA, retail charge, and 8% Sales and Service Tax (SST).
Those consuming 300kWh or less a month are also exempt from the 1.6% Renewable Energy Fund (KWTBB) levy.
TNB says the AFA works both ways, with electricity charges adjusted according to changes in fuel costs and foreign exchange rates
In a statement yesterday responding to concerns over higher electricity bills, TNB explained that the AFA works as a two-way mechanism.
"When global fuel costs are lower, consumers benefit from a rebate rate, with the savings passed directly to their electricity bills.
"Since the implementation of the new electricity tariff, consumers have received AFA rebates for nine consecutive months, from August 2025 to April 2026," it said, as reported by the New Straits Times.
AFA rates from October 2025 to September 2026.
Image via TNBConversely, when global fuel costs increase, the difference is reflected through a surcharge.
TNB said an AFA surcharge has been imposed since May 2026, with the surcharge for September 2026 currently standing at 3.67 sen per kWh.
Since the AFA was introduced, consumers have received RM3.1 billion in rebates compared with RM800 million in surcharges, TNB said.
