EV 'Fuel' Hike: How To Use TNB’s Off-Peak Rates To Dodge The Upcoming August Surcharge

After nearly a year of enjoying cheaper electricity to power our homes and EVs, May 2026 has delivered a historic first: a positive Automatic Fuel Adjustment (AFA) surcharge. 

While +1.38 sen/kWh might look like small change on paper, it signals a major shift in our electricity landscape, especially with August forecasts looking even steeper. If you’re an EV owner who’s been charging whenever you feel like it, it’s time to get tactical. Here is how to navigate the new rates without breaking the bank

The Math: Why Your EV "Fuel" Just Got Pricier

Initially, forecasts expected May 2026 to remain in the negative territory at -0.39 sen/kWh. Instead, actual costs spiked to +2.24 sen/kWh.

Thanks to a RM91 million subsidy from the Kumpulan Wang Industri Elektrik (KWIE), the impact on your bill was softened to +1.38 sen/kWh. But looking ahead to August 2026, TNB expects the AFA to hit a staggering +3.93 sen/kWh.

Why the hike?

Kenyir dam. (Photo: Bernama)

It’s a perfect storm of local and global factors:

• Generation Hiccups: In February 2026, two coal plants went offline unexpectedly.
• Low Water Levels: Drought conditions at the Temenggor and Kenyir dams reduced our hydropower capacity.
• Alternate Fuel Costs: To meet demand, TNB had to rely on more expensive gas and alternate fuels, which increased generation costs by 11%.

The "Dodge": How to Beat the August Surcharge

If you’re worried about your EV ownership costs creeping up, you have two main "escape" routes.

1. The "600kWh" Rule (The Free Zone)

The AFA surcharge is completely waived if your total household consumption stays at 600kWh or below per month.

If you have a small EV battery (like a 44kWh BYD Dolphin) and moderate driving habits, you might be able to keep your total bill under this threshold to avoid the surcharge entirely.

2. The Time of Use (ToU) Hack (The Money Saver)

For high-usage households (especially those with 1,500kWh+ consumption), switching to the Time of Use (ToU) scheme is no longer just an option, it’s a necessity.

If you have a smart meter, you can effectively "dodge" the new AFA surcharge by shifting your heaviest usage to off-peak hours (10pm to 2pm on weekdays, and all day on weekends!). 

By scheduling your EV to charge exclusively during these windows, you tap into significantly lower rates:

• Usage ≤ 1,500kWh: 24.43 sen/kWh (Off-Peak) vs. 28.52 sen/kWh (Peak)
• Usage > 1,500kWh: 34.43 sen/kWh (Off-Peak) vs. 38.52 sen/kWh (Peak)

Charging after 10pm doesn't just save you on the base tariff; it’s your best defense against rising fuel costs by fueling up when the grid is at its cheapest.

Should You Switch to the Green Energy Tariff (GET)?

TNB offers the Green Energy Tariff (GET), which exempts you from AFA surcharges entirely. However, it comes with a fixed cost:

• 1-Year Lock-in: 5 sen/kWh
• 2-Year Lock-in: 4 sen/kWh
• 3-Year Lock-in: 3 sen/kWh

If the AFA rate stays around +1.38 sen, GET is more expensive. But if TNB’s August forecast of +3.93 sen holds true, locking in a 3-year GET subscription at 3 sen/kWh actually becomes a cheaper way to charge your EV than the standard tariff.

The Verdict

The era of "free" AFA discounts is over. While EVs remain significantly cheaper to "fuel" than RON95 petrol (especially with current fuel prices), the gap is narrowing.

To keep your savings high:

• Check your smart meter and consider the ToU scheme.
• Schedule your charging for after 10pm.
• Monitor the August forecast, it might be time to go "Green" just to save some green.

How much did your TNB bill go up this May? Tell us in the comments if you’re planning to switch to a ToU plan! 

Source: Paultan