AFA in Effect: 1.45 sen/kWh Rebate Lowers EV Charging Costs This August

Electric vehicle (EV) users can now expect more dynamic and responsive electricity pricing starting this Aug, with the first adjustment under the Automatic Fuel Adjustment (AFA) mechanism taking effect.

According to Deputy PM and Energy Transition Minister Datuk Seri Fadillah Yusof, AFA replaces the previous Imbalance Cost Pass-Through (ICPT) system with a monthly adjustment model. This change allows electricity tariffs to reflect real-time fluctuations in global fuel prices and exchange rates, instead of relying on the outdated six-month review cycle.

The AFA rate for August was projected as a rebate of 1.45 sen per kWh during the July 1 tariff restructuring, and that figure remains accurate — despite several dailies reporting 1.545 sen per kWh, which was mistakenly cited by Fadillah.

The revision reflects actual market fuel costs and highlights how AFA allows for more accurate, real-time adjustments compared to the ICPT.

For EV users who charge at home, this has immediate implications. A 66 kWh vehicle like the XPeng G6 580 Pro, charged five times a month, would consume roughly 330 kWh. At the rebate rate of 1.45 sen per kWh, that translates to a monthly saving of RM4.79 on the energy component of the electricity bill.

While modest, these savings demonstrate the benefit of more responsive and transparent pricing. Households consuming less than 600kWh per month remain exempt from AFA, but frequent home EV charging may push monthly usage above that threshold.

Looking ahead, the Energy Commission and Tenaga Nasional Berhad (TNB) have also released projected AFA rates for the next three months to help consumers plan their energy budgets. The expected rebates are 1.23 sen per kWh in Sept, 2.65 sen in Oct, and 1.95 sen in Nov.

These rates are forecasts and will be updated monthly based on actual fuel costs and market data.

AFA is part of a broader electricity tariff reform introduced under Regulatory Period 4 (RP4), which began on July 1, 2025. The new structure provides itemised billing with clearer breakdowns across energy, capacity, network, and retail charges.

Fadillah further reiterated that the long-term goal is to promote energy efficiency and pricing transparency, while supporting Malaysia’s broader energy transition agenda. He also encouraged high-consumption users to consider adopting solar photovoltaic (PV) systems to reduce dependency on grid power and manage rising electricity costs.

For EV owners, these changes make it more important than ever to understand and optimise electricity usage. Whether through smart charging, switching to Time-of-Use (ToU) tariffs or investing in renewables, AFA puts more control into consumers’ hands.

Source: MalayMail