Malaysia overhauls power tariff system with monthly fuel-based adjustments. (Photo: iStock)
Starting in July, Peninsular Malaysia will implement an Automatic Fuel Adjustment (AFA) mechanism for electricity pricing, replacing the current Imbalance Cost Pass-Through (ICPT) system.
Under the AFA, electricity tariffs will be adjusted monthly based on prevailing fuel prices and exchange rates, compared to the current biannual schedule. According to the Energy Commission (EC), base electricity rates may be reduced by up to 19% under the new system.
