Latest news with #AFA
The Star
16 hours ago
- Business
- The Star
Electricity bills to reflect real-time fuel prices from August
DOMESTIC electricity users consuming more than 600 kilowatt hours (kWh) a month will receive a rebate of 1.45sen per kWh throughout August 2025, under the government's newly implemented Automatic Fuel Adjustment (AFA) mechanism, says Deputy Prime Minister Datuk Seri Fadillah Yusof (pic). Fadillah, who is also Energy Transition and Water Transformation Minister, said the rebate was made possible due to a drop in global fuel prices, including natural gas and coal, which are major components of Malaysia's electricity generation mix. 'This rebate will apply from Aug 1 to 31, 2025, and reflects the actual decrease in input costs. 'Under the AFA system, electricity tariffs are now adjusted every month, providing a more accurate and transparent pricing mechanism for consumers,' he said during the Minister's Question Time. 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). 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 600kWh or less monthly will remain exempt from AFA charges, protecting lower-income and low-usage households. 'We want to ensure that the majority of consumers, particularly those who use electricity efficiently, are not burdened by global fuel price fluctuations.' Fadillah also announced updates to the electricity tariff structure for Peninsular Malaysia, introduced by the Energy Commission (ST) on June 20 and implemented on July 1. The revised structure now includes a detailed cost breakdown and new energy efficiency incentives for micro, small and medium enterprises (MSMEs). 'For the first time, the electricity tariff structure clearly displays the energy charge, capacity charge, network charge and retail charge for each consumer category,' he said. He said this marked a departure from the previous format, which only listed the energy charge and minimum charge. The improved transparency is part of the government's broader effort to raise public awareness and encourage smarter energy use in line with the national energy transition agenda, he said. Fadillah said the government has allocated RM40mil under the NUR@Petra programme (Nikmat Untuk Rakyat), aimed at helping households purchase energy-efficient appliances. 'The NUR@Petra programme currently offers rebates of up to RM400 for the purchase of 4-star or 5-star energy efficient air-conditioners and refrigerators,' Fadillah said, adding that the move is part of the broader push to reduce electricity consumption through smarter technology adoption. He also clarified that the RM40 monthly electricity rebate, which remains targeted at B40 households, is no longer strictly tied to the e-Kasih database. He said eligibility now also takes into account electricity consumption levels, particularly for households using 600kWh or less per month. 'This rebate system is now partly usage-based, ensuring that support reaches those who genuinely practise prudent energy use, not just those listed under a specific income category.'
New Straits Times
a day ago
- Business
- New Straits Times
Fadillah: Revised electricity tariff has minimal consumer impact
KUALA LUMPUR: The newly revised electricity tariff structure for Peninsular Malaysia now includes clearer cost breakdowns, reflecting the true cost of power supply, said Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof. He said under the new structure, the details of Energy Charges, Capacity Charges, Network Charges, and Retail Charges for each user category are listed — unlike the previous structure, which only featured Energy Charges and a Minimum Charge component. Fadillah explained that the revised tariff ensures fair and equitable cost distribution across all users, while causing minimal changes for domestic consumers. "Previously, we used the Imbalance Cost Pass-Through (ICPT) mechanism, based on fuel price evaluations every six months. Each half-year, we'd calculate the average increase in gas, coal, and other factors. That component was reviewed every six months. "But now, we've moved to the Automatic Fuel Adjustment (AFA), which is evaluated monthly. So, every month we will know the rate, and it is projected forward," he said during Minister's Question Time in the Dewan Rakyat today, in response to a supplementary question from Datuk Abdul Khalib Abdullah (PN-Rompin). Fadillah was also responding to a question from Dr Mohammed Taufiq Johari (PH–Sungai Petani), who asked about the objective of the new tariff schedule in achieving energy transition goals and long-term sustainability, as well as the government's response to claims that the new tariffs are burdensome and how it plans to address public confusion and concern over the policy. Tenaga Nasional Bhd (TNB) had previously announced that under the new structure announced by the Energy Commission (ST), consumers can now view a detailed breakdown of every sen spent on electricity via a more comprehensive bill format. The new structure, approved by the government under the Incentive-Based Regulation (IBR) mechanism, is in line with Section 26 of the Electricity Supply Act 1990. According to the official myTNB website, bills will now display a breakdown of three key components: Generation Charges, Network Charges, and Retail Charges. This aims to improve transparency and user understanding of electricity billing. Generation Charges include the cost of fuel, generation capacity, and global fuel price adjustments, while Network Charges cover transmission operations and system maintenance and Retail Charges include customer service, billing, and account management costs. Fadillah elaborated that domestic users consuming below 600 kilowatt-hours (kWh) are exempt from the AFA. However, those using more than 600kWh will be charged based on the cost of energy sources such as gas and coal. "Because fuel and gas prices have dropped, for August 1 to 31, a rebate of 1.545 sen per kilowatt-hour will be applied due to the price decrease. "This is now done monthly — not every six months — meaning the values are more accurate and transparent according to current market conditions," he added. Fadillah noted that the revised structure is more transparent and can help educate consumers about the various cost components involved in electricity supply. "This is an early step to raise awareness and educate the public to become energy-smart consumers, in line with the national energy transition agenda," he said. He also explained that tariff rates in the new schedule are no longer based on economic activity but on voltage connection levels. This aims to ensure non-domestic users are charged based on the actual cost of electricity supply and to prevent discrimination based on business sector. "This also supports sustainability by creating a level playing field for participation among non-domestic users. "Transparency in cost components may also encourage non-domestic users to explore renewable energy sources as more competitive alternatives, while contributing to corporate social responsibility in achieving net-zero carbon emissions by 2050," he said. To ensure the public understands the new tariff structure, Fadillah said his ministry, together with the Energy Commission (ST) and TNB, have released a series of infographics to educate users on the newly introduced components — energy charge, capacity charge, network charge, retail charge — and the AFA component, which replaces the previous ICPT mechanism.
The Sun
a day ago
- Business
- The Sun
New electricity tariff mechanism boosts transparency in Malaysia
KUALA LUMPUR: The Automatic Fuel Adjustment (AFA), the new adjustment mechanism for electricity tariffs in Peninsular Malaysia, is aimed at ensuring tariff reviews are more transparent and in line with the global fuel market reality, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also the Energy Transition and Water Transformation Minister, said that through this new mechanism, electricity tariffs will be adjusted monthly compared to only every six months under the Imbalance Cost Pass-Through (ICPT) system. 'For domestic users consuming below 600 kilowatt-hours (kWh) per month, they are exempted from the AFA, while those consuming more than 600 kWh will be charged for the energy resources, whether gas or coal. 'For August, due to the drop in fuel costs from Aug 1 to 31, a rebate of 1.545 sen per kWh will be given for the power supply. (The review) is done monthly -- no longer every six months -- which means it is more accurate and transparent based on real-time,' he said during the Minister's Question Time session in the Dewan Rakyat today. He was responding to a supplementary question from Datuk Abdul Khalib Abdullah (PN-Rompin) who asked whether the government plans to consider a more flexible and transparent tariff review in the future. Fadillah said the latest tariff review also involves a change in approach from customer categorisation based on economic sectors to by voltage usage. Therefore, he said, the government encourages those who consume higher amounts of energy to switch to renewable energy, including through solar photovoltaic installation, aimed at helping them save costs and reduce overall energy consumption. Answering Dr Mohammed Taufiq Johari's (PH-Sungai Petani) query regarding the objectives of the new electricity tariff schedule in achieving the energy transition agenda and long-term sustainability, Fadillah said it is an improvement to the previous structure based on four main principles. These include transparent tariff setting, tariff structure that reflects actual supply costs, fair and equitable cost distribution to all consumers, and minimal impact on domestic users in terms of bill variance. 'This new structure includes energy charges, capacity charges, network charges, and retail charges for each user category compared to the old structure which only had energy charge and minimum charge components. 'In this regard, the new structure is more transparent and exposes users to the costs that must be paid to obtain electricity supply,' he said. On June 20, the Ministry of Energy Transition and Water Transformation, through the Energy Commission, announced a revised electricity tariff schedule for Peninsular Malaysia effective from July 1, 2025. - Bernama
Malay Mail
a day ago
- Business
- Malay Mail
Electricity tariffs to be reviewed monthly under new fuel adjustment system, says Fadillah
KUALA LUMPUR, July 29 — The Automatic Fuel Adjustment (AFA), the new adjustment mechanism for electricity tariffs in Peninsular Malaysia, is aimed at ensuring tariff reviews are more transparent and in line with the global fuel market reality, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. Fadillah, who is also the energy transition and water transformation minister, said that through this new mechanism, electricity tariffs will be adjusted monthly compared to only every six months under the Imbalance Cost Pass-Through (ICPT) system. 'For domestic users consuming below 600 kilowatt-hours (kWh) per month, they are exempted from the AFA, while those consuming more than 600 kWh will be charged for the energy resources, whether gas or coal. 'For August, due to the drop in fuel costs from Aug 1 to 31, a rebate of 1.545 sen per kWh will be given for the power supply. (The review) is done monthly -- no longer every six months -- which means it is more accurate and transparent based on real-time,' he said during the Minister's Question Time session in the Dewan Rakyat today. He was responding to a supplementary question from Datuk Abdul Khalib Abdullah (PN-Rompin) who asked whether the government plans to consider a more flexible and transparent tariff review in the future. Fadillah said the latest tariff review also involves a change in approach from customer categorisation based on economic sectors to by voltage usage. Therefore, he said, the government encourages those who consume higher amounts of energy to switch to renewable energy, including through solar photovoltaic installation, aimed at helping them save costs and reduce overall energy consumption. Answering Dr Mohammed Taufiq Johari's (PH-Sungai Petani) query regarding the objectives of the new electricity tariff schedule in achieving the energy transition agenda and long-term sustainability, Fadillah said it is an improvement to the previous structure based on four main principles. These include transparent tariff setting, tariff structure that reflects actual supply costs, fair and equitable cost distribution to all consumers, and minimal impact on domestic users in terms of bill variance. 'This new structure includes energy charges, capacity charges, network charges, and retail charges for each user category compared to the old structure which only had energy charge and minimum charge components. 'In this regard, the new structure is more transparent and exposes users to the costs that must be paid to obtain electricity supply,' he said. On June 20, the Ministry of Energy Transition and Water Transformation, through the Energy Commission, announced a revised electricity tariff schedule for Peninsular Malaysia effective from July 1, 2025. — Bernama
The Star
a day ago
- Business
- The Star
Eligible consumers to get 1.45 sen/kWh rebate in August under new mechanism
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. '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).
