TNB September 2026 AFA rate eases to +3.67 sen/kWh

What happened

The Energy Commission (ST) set the Automatic Fuel Adjustment (AFA) rate for September 2026 at +3.67 sen per kWh. That is down from +3.80 sen/kWh in August 2026.

The rate applies to Tenaga Nasional Berhad (TNB) electricity tariffs for the month. It reflects changes in fuel and generation costs passed through to consumers.

Why it matters

The AFA rate directly affects monthly electricity bills for households and businesses in Peninsular Malaysia. A lower rate means consumers pay less for the fuel component of their electricity.

This is the second consecutive monthly decline. It points to easing cost pressures in power generation and offers some relief amid broader inflation.

Impact on Malaysia

For households, the lower AFA rate trims electricity expenses slightly. Energy-intensive industries will see a small dip in operating costs.

The easing trend may support consumer spending and business margins. But the rate remains positive, so consumers still pay a surcharge rather than getting a rebate.

Background

The AFA mechanism adjusts tariffs based on fluctuating fuel prices, mainly coal and natural gas. TNB passes these costs to consumers monthly under the regulatory framework.

Global energy prices have moderated in recent months, driving the downward trend. September continues that, though the pace of decline has slowed.

Outlook

Analysts will watch for further declines as fuel markets stabilise. If global prices stay soft, the AFA rate could move toward zero or even negative, triggering rebates.

Geopolitical risks and supply disruptions could reverse the trend. TNB and ST will keep monitoring fuel costs.

What's next

The September rate takes effect for the full month. Consumers will see the change on their next bills.

ST and TNB will announce the October rate in early October. Market watchers expect a further dip if coal and gas prices hold steady.