We would like to share a brief commentary provided to Utusan Malaysia regarding the AFA and its impact on electricity consumers, particularly those consuming 600 kWh (approximately RM216) and below, who will not be affected.
The most accurate way to assess electricity usage is by focusing on kWh consumption rather than the total bill amount. Why is this important?
Under the general tariff structure, the RM/kWh rate remains consistent. However, Tenaga Nasional Berhad (TNB) and the government have introduced various incentives for consumers using below 600 kWh and below 1,000 kWh.
FOR USERS BELOW 600 kWh
- They are exempted from AFA charges
- They are not subject to SST
- They are not subject to retail charges
- They also receive Energy Efficiency Incentives (EEI)
In other words, multiple forms of rebates or incentives apply to this group.
For users below 1,000 kWh, a partial EEI incentive still applies.
However, once consumption exceeds 600 kWh or 1,000 kWh, these benefits are automatically withdrawn. Even a small increase—such as moving from 600 kWh to 601 kWh—will result in the application of AFA, SST, service charges, and a different EEI category.
KEY OBSERVATION
Many users may notice a higher electricity bill in May and June due to:
- The introduction of positive AFA charges
- Hot weather conditions during these months
- Increased consumption pushing users into higher tariff brackets
However, users who remain below 600 kWh will generally not experience significant changes in their bill amount.