EV owners: beat TNB's August surcharge with off-peak rates

Malaysia's EV owners have enjoyed months of rebates on their TNB electricity bills, but that run of good fortune is about to end. 

According to TNB's own Q3 2026 forecast, the Automatic Fuel Adjustment (AFA) rate is set to climb to +3.93 sen/kWh in August 2026, the steepest surcharge since the new tariff structure was introduced in July 2025. For a household that charges an electric vehicle at home and consumes more than 600 kWh per month, this translates directly into a higher bill. The good news is that TNB's Time-of-Use (ToU) off-peak scheme gives EV owners a practical, tested way to blunt that impact, and the strategy is simpler than most drivers realise.

What is the AFA, and why does it matter for EV owners?

The Automatic Fuel Adjustment (AFA) is a monthly billing mechanism introduced by Tenaga Nasional Berhad on 1 July 2025 as part of Malaysia's new electricity tariff restructuring under the National Energy Transition Roadmap (NETR). It replaced the older Imbalance Cost Pass-Through (ICPT) system, which only reviewed fuel costs every six months.

Under the AFA framework, the Energy Commission (Suruhanjaya Tenaga) sets a rate each month that reflects real-time global fuel prices and foreign exchange movements. Monthly changes are capped at plus or minus 3 sen per kWh, and any adjustment beyond that cap requires cabinet approval. When fuel costs are low, the AFA is a rebate and your bill goes down. When fuel prices rise, the AFA becomes a surcharge and your bill goes up.

EV owners are disproportionately exposed to this mechanism because they consume significantly more electricity than the average household. If your total monthly consumption is 600 kWh or less, you are fully exempt from the AFA charge. However, once you cross the 600 kWh threshold, the AFA applies to every single unit of electricity you consumed that month. Most EV users comfortably exceed that threshold the moment they start charging regularly at home.

The August 2026 surcharge: what the numbers say

After months of negative AFA rates that effectively reduced electricity bills, the trend has reversed. May 2026 saw the AFA rate set at a positive number for the first time, and TNB forecasts Q3 2026 AFA to all be in the positive range, from +2.92 sen/kWh in June, dropping to +0.22 sen/kWh in July and finally up to +3.93 sen/kWh in August.

To put that in practical terms: an EV owner who charges 400 kWh per month exclusively at home would pay an additional RM15.72 in August compared to a month when the AFA was zero. That may not sound catastrophic in isolation, but combined with the base tariff structure, it accelerates the argument for smarter charging habits.

What is the TNB Time-of-Use (ToU) scheme?

The Time-of-Use (ToU) scheme is an optional tariff plan offered by TNB to domestic consumers with compatible smart meters. TNB defines it as a scheme that allows customers to manage their electricity usage more efficiently and enjoy lower rates during off-peak hours. Electricity rates are lower during off-peak hours to encourage more usage when demand is low, and higher during peak hours due to higher demand.

Put simply, your electricity cost per kWh depends on when you use it, not just how much you use.

Under the ToU scheme, you enjoy lower electricity rates when you shift your usage to off-peak hours, specifically before 2 PM or after 10 PM on weekdays, and all day on Saturday and Sunday. That structure gives domestic consumers 16 off-peak hours every weekday and the entire weekend to take advantage of cheaper rates.

How much cheaper is off-peak charging?

If your household uses less than 1,500 kWh per month, off-peak rates are charged at 24.43 sen/kWh compared to 28.52 sen/kWh during peak times. For households consuming over 1,500 kWh per month, peak rates are charged at 38.52 sen/kWh while off-peak rates are 34.43 sen/kWh.

The ToU off-peak rates are 2.6 sen cheaper per kWh than the standard all-day rate of 27.03 sen/kWh for usage below 1,500 kWh. That gap may seem small on paper, but EV charging amplifies it substantially. An EV consuming 400 kWh per month exclusively during off-peak hours saves RM10.40 on energy charges alone compared to the general scheme, and that saving compounds every month of the year.

Analysis of community discussions shows high satisfaction among users on ToU tariffs, with many reporting 30 to 40 percent lower EV charging costs when charging exclusively during off-peak periods.

How to set your EV charging to off-peak hours

The strategy is straightforward: schedule your EV to begin charging after 10 PM on weeknights, or any time over the weekend. Most modern EVs, whether a BYD Atto 3, Chery Omoda E5, Volvo EX30, or any other model sold in Malaysia today, include a built-in charging scheduler accessible through the vehicle's infotainment system or companion app. Simply set the charge start time to 10:00 PM or later, and the vehicle will draw electricity at the lower ToU rate automatically.

If your EV does not have an onboard scheduler, a smart EV home charger with a timer function achieves the same result. Any smart charger with timer functionality can align with off-peak windows. Models without scheduling should be avoided, as manual plugging defeats the cost-saving intent.

How to apply for the TNB ToU scheme

The ToU scheme is not automatic and requires a manual opt-in. The scheme is available to customers who have been installed with a Smart Meter, Current Transformer (CT) meter, or Remote Meter Reading (RMR) meter. Users can apply for the ToU scheme via the TNB web portal or the MyTNB app.

To apply through the MyTNB app, open the app and tap the "Time of Use" icon, select your eligible TNB account, tap "Get Started," review and confirm your contact details, and submit. You can also walk into the nearest Kedai Tenaga branch if you prefer to apply in person.

Before switching, check your meter type through the MyTNB app or at a Kedai Tenaga outlet to confirm eligibility. The scheme is currently only available to consumers in Peninsular Malaysia and does not apply to Sabah or Sarawak.

Is the ToU scheme worth it for every EV owner?

Whether the ToU scheme is worth switching to depends entirely on your electricity usage habits. If you are not ready to prioritise high power consumption towards off-peak hours, you can remain on the current normal scheme, which has a fixed tariff throughout the day.

The scheme delivers the most value to EV owners who can consistently charge overnight or on weekends, and who are disciplined about keeping other high-draw appliances like washing machines, dryers, and water heaters within the off-peak window. For households that run heavy appliances predominantly during the day, the peak rate premium may erode or negate the savings.

The August surge in AFA rates makes the calculus clearer. With a +3.93 sen/kWh surcharge forecasted, shifting consumption to off-peak periods reduces both the base energy cost and the AFA exposure simultaneously, a compounding benefit.

FAQ

What are TNB's off-peak hours under the ToU scheme? 

Off-peak hours for domestic ToU customers are before 2 PM and after 10 PM on weekdays, and all day on Saturdays and Sundays.

What is the AFA surcharge and who is affected?

 The Automatic Fuel Adjustment (AFA) is a monthly charge that reflects real-time fuel and foreign exchange costs. It applies to all domestic customers consuming more than 600 kWh per month. TNB forecasts the AFA to reach +3.93 sen/kWh in August 2026.

How much can an EV owner save by switching to ToU off-peak rates? 

Under the standard residential ToU plan, off-peak rates for usage below 1,500 kWh/month are 24.43 sen/kWh versus 28.52 sen/kWh during peak hours. An EV owner charging 400 kWh per month exclusively off-peak saves approximately RM10.40 per month on energy charges alone.

Does the ToU scheme apply to all TNB customers? 

No. The ToU scheme is only available to domestic customers in Peninsular Malaysia who have a compatible smart meter, CT meter, or RMR meter. It is an optional opt-in plan and does not activate automatically.

How do I apply for the TNB ToU scheme? 

You can apply through the MyTNB app by tapping the "Time of Use" icon and following the steps, or by visiting the nearest Kedai Tenaga branch. Applications are also available via the TNB web portal.

Can I avoid the AFA entirely?

 Domestic consumers who keep total monthly consumption at 600 kWh or below are fully exempt from the AFA. Alternatively, TNB's Green Energy Tariff (GET) exempts subscribers from AFA charges, though it carries its own per-kWh premium.

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