ICPT TNB Malaysia: What It Means & Why It’s Now Called AFA (2026)

What Is ICPT?

ICPT stands for Imbalance Cost Pass-Through – a mechanism that allows TNB to pass on a portion of the real cost of electricity generation (mainly fuel prices like gas and coal) to consumers, periodically. If fuel costs rise above the original estimate, TNB charges an additional surcharge on your bill. If fuel costs fall, consumers get a rebate.

Before July 2025, ICPT was reviewed every 6 months (January-June and July-December) and announced by the Energy Commission (Suruhanjaya Tenaga, ST).

Brief History of ICPT

The ICPT mechanism was introduced alongside the tiered tariff structure in 2014, as a transparent way to reflect global fuel cost fluctuations without needing to overhaul the entire base tariff structure every time fuel prices changed. Over its lifetime, ICPT has been both an additional charge (when fuel prices were high) and a rebate (when fuel prices were low) – depending entirely on global energy markets at the time.

ICPT vs AFA – What’s The Difference?

Under RP4 (Regulatory Period 4, effective 1 July 2025), ICPT’s name and mechanism changed to AFA (Automatic Fuel Adjustment):

Even though the official name has changed, many people still use the term “ICPT” since it’s been in common use for years. When you check your current TNB bill, look for the label “AFA” in the breakdown – that’s the ICPT replacement.

How AFA/ICPT Is Calculated & Its Effect On Your Bill

Basic formula: Total Usage (kWh) x AFA/ICPT Rate (sen/kWh) = Charge or Rebate

Because AFA is calculated based on the total kWh you use, households or businesses with high usage will feel the impact of AFA fluctuations more noticeably than lower-usage households.

Is AFA Always Positive (Additional Charge)?

Not necessarily. AFA/ICPT can be negative (a rebate) when the actual cost of generation fuel falls below the base estimate – this has happened before during periods of low global energy prices. Because AFA is now reviewed monthly under RP4, it’s more responsive to market swings than the old ICPT reviewed every 6 months – meaning the rebate (or charge) should more frequently reflect actual current costs.

2026 AFA Rate History (Month by Month)

TNB’s AFA rate has swung from a rebate to a surcharge through 2026 as global fuel and generation costs moved. Here’s every rate the Energy Commission (Suruhanjaya Tenaga) has set so far this year, updated monthly:

Rates above 3 sen/kWh need Cabinet approval, and the Kumpulan Wang Industri Elektrik (KWIE) fund can subsidise part of an increase before it reaches your bill – this is why some month-to-month jumps look smaller than the raw fuel cost swing. AFA is waived entirely if your total usage is 600 kWh or below in that month, and it doesn’t apply if you’re on the Green Energy Tariff option administered by Suruhanjaya Tenaga (Energy Commission).

We update this table monthly when ST announces the new AFA rate – bookmark this page rather than searching for each month separately.

How To Avoid The Impact Of AFA/ICPT Fluctuations

Because AFA/ICPT is calculated based on every kWh you import from the TNB grid, the most effective way to reduce the impact of these fluctuations is to reduce your dependence on grid electricity – i.e. install solar panels. Every kWh you generate and use yourself from solar isn’t subject to this charge at all, since it never passes through the TNB import meter.

This means solar doesn’t just save on your base electricity cost – it also protects you from the risk of rising global fuel costs that are outside your control.

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Frequently Asked Questions

Note: Rates and mechanisms above are based on the RP4 structure effective 1 July 2025. Please check myTNB or the official TNB website for the current month’s rate.