KUALA LUMPUR: Domestic electricity users consuming more than 600 kilowatt hours (kWh) a month will receive a rebate of 1.45 sen/kWh in August under the government’s newly implemented Automatic Fuel Adjustment (AFA) mechanism, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also Energy Transition and Water Transformation Minister, said the rebate was made possible by a drop in global fuel prices, including natural gas and coal, major components of Malaysia’s electricity generation mix.
“This rebate will apply from Aug 1 to 31 and reflects the actual decrease in input costs.
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“Under the AFA system, electricity tariffs are now adjusted every month, providing a more accurate and transparent pricing mechanism for consumers,” he told the Dewan Rakyat on Tuesday (July 29).
The AFA, which replaces the previous biannual Imbalance Cost Pass-Through (ICPT) system, allows tariffs to be adjusted based on real-time fuel prices and forward projections.
This shift is part of the government’s broader push for energy transparency and fiscal sustainability, while encouraging smarter energy consumption habits.
Fadillah added that domestic users consuming 600 kWh or less monthly will continue to be exempted from AFA charges, maintaining protection for lower-income households and light users.
“We want to ensure that the majority of consumers, particularly those who use electricity efficiently, are not burdened by fluctuations in global fuel prices,” he said.
According to Fadillah, the August rebate marks the first time a monthly AFA adjustment has been publicly announced since the new structure was introduced on July 1, following the start of the fourth regulatory period (RP4).
