Link Copiedcheck_circle
EV

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

Kumeran Sagathevan

Share via

thumb-(8).jpg


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tariffs to reflect real-time fluctuations in global fuel prices and exchange rates, instead of relying on the outdated six-month review cycle.


Screenshot-2025-07-30-083757.jpg


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.


Caricarz-MBA-Xpeng-G6-580Pro-Rolling-10-full_normal.jpg


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.


Screenshot-2025-06-21-152616-full_normal.jpg


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

Tagged:

Automatic Fuel Adjustment (AFA) mechanism
Time-of-Use (ToU) Tariff
Imbalance Cost Pass-Through (ICPT)
Tenaga Nasional Berhad (TNB)
Energy Commission (ST)
Share This Article

Written By

Kumeran Sagathevan

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well!

Share via

Related News

Auto News
TNB Tariff Rates Raised 14.2% Starting July 2025

TNB Tariff Rates Raised 14.2% Starting July 2025

TNB announces 14.2% increase in electricity tariff rates, and this is set to take effect from July 2025 onwards.

Auto News
2% ICPT Removal Sees Electricity Bill Hike For 15% Of Users

2% ICPT Removal Sees Electricity Bill Hike For 15% Of Users

15% of households in Malaysia will pay an extra RM12 to RM32 for their electricity bill, EV users are highly likely to fall in this category.

EV
New TNB Electricity Tariff Structure From July 1, 2025

New TNB Electricity Tariff Structure From July 1, 2025

TNB’s revamped electricity tariff structure, effective July 1, 2025, promises fairer, clearer billing and rewards for energy-efficient users.

EV
TNB’s Gurun DCFC: 100% Taken, 50% Delivered, Why?

TNB’s Gurun DCFC: 100% Taken, 50% Delivered, Why?

TNB’s Gurun setup underdelivers on power and over-reserves the grid, leaving little room for others.

EV
New ChargEV Pitstop Tangkak: Powering Passenger and Logistics Electrification

New ChargEV Pitstop Tangkak: Powering Passenger and Logistics Electrification

New ChargEV Pitstop Tangkak features DCFC for both light and heavy vehicles along North-South Highway.

Auto News
TNB Tariff Rates Raised 14.2% Starting July 2025

TNB Tariff Rates Raised 14.2% Starting July 2025

TNB announces 14.2% increase in electricity tariff rates, and this is set to take effect from July 2025 onwards.

EV
TNB: RM90 Billion Allocated To Beef Up Energy Grid, Roll Out 500 EV Charging Points

TNB: RM90 Billion Allocated To Beef Up Energy Grid, Roll Out 500 EV Charging Points

TNB gears up to drive Malaysia’s green future by expanding a nationwide EV charging network – 500 EV Charging point by 2025.

EV
PETRA & TNB To Strengthen National Electricity Grid To Support EV Charging Network

PETRA & TNB To Strengthen National Electricity Grid To Support EV Charging Network

PETRA will enhance and expand the national electricity grid through TNB to meet growing EV charging needs.

Latest News

EV
Next-Gen Mercedes-Benz GLC EV Teases New Signature Grille And Lighting

Next-Gen Mercedes-Benz GLC EV Teases New Signature Grille And Lighting

Next generation Mercedes-Benz GLC EV teaser shows marque’s reinvented signature grille design plus bold new lighting elements.

05-08-2025
EV
JomCharge Introduces New Elite Plan at RM9.90/Month

JomCharge Introduces New Elite Plan at RM9.90/Month

New JomCharge Elite plan gives EV users 10% off charging at over 1,000 stations for just RM9.90/month.

EV
Freelander Returns As Chery and Land Rover’s New EV SUV

Freelander Returns As Chery and Land Rover’s New EV SUV

The Freelander name is back, this time as an EV SUV developed by Chery and Land Rover.

EV
Exeed Exlantis E05 EREV Unveiled Ahead of Munich Debut

Exeed Exlantis E05 EREV Unveiled Ahead of Munich Debut

Previewed in China ahead of its Munich Motor Show debut is the new Exeed Exlantix E05 mid-size EREV SUV.

30-07-2025
EV
AFA in Effect: 1.45 sen/kWh Rebate Lowers EV Charging Costs This August

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

The first AFA-based adjustment offers direct savings for high-usage households, including EV owners.

EV
RHD Avatr 11 Launches in Singapore - Malaysia Next?

RHD Avatr 11 Launches in Singapore - Malaysia Next?

RHD version of the Avatr 11 debuts in Singapore, prompting speculation of a possible launch in Malaysia soon.

EV
Honda N-One e: Unveiled – Kei EV with 270 KM WLTP Range

Honda N-One e: Unveiled – Kei EV with 270 KM WLTP Range

The Honda N-One e: was unveiled as the production version of the Super EV Concept, featuring up to 270 km of WLTP range.

29-07-2025
EV
Thailand Cuts EV Taxes for Carmakers Using Local Parts

Thailand Cuts EV Taxes for Carmakers Using Local Parts

EVs with more Thai-made components may soon pay less excise duty under a new tax overhaul.