Malaysia Introduces Monthly Electricity Tariff Adjustment Under New AFA Mechanism

KUALA LUMPUR: Deputy Prime Minister Fadillah Yusof announced the implementation of the Automatic Fuel Adjustment (AFA) mechanism, replacing the biannual ICPT system for electricity tariffs in Peninsular Malaysia. AFA allows monthly tariff reviews, aligning rates more closely with real-time global fuel prices. Domestic users consuming under 600 kWh monthly are exempt, while higher users face adjustments based on fuel types. For August, a rebate of 1.545 sen/kWh will apply. The revised system also introduces a voltage-based customer categorisation and a detailed cost breakdown. Fadillah urged high-energy users to adopt renewable energy, citing the policy’s role in supporting long-term energy transition goals.

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