With Malaysia’s latest electricity tariff restructuring and increasingly unstable global environment, many businesses are starting to notice something new on their bill:

Capacity Charges | Network Charges | Automatic Fuel Adjustment (AFA)

While energy consumption (kWh) still matters, your electricity cost is no longer just about how much energy you use — it’s increasingly about how and when you use it and it impact significantly on your company OPEX.

What Is Capacity Charge, Network Charges and AFA?

Capacity Charges - Capacity payments under Power Purchase Agreements (PPA) and Service Level Agreements (SLA).

Network Charges - Covers the cost of delivering electricity to your premises, including infrastructure maintenance and upgrades.

Automatic Fuel Adjustment (AFA) – Replacement of the previous ICPT mechanism. This mechanism adjusts tariffs every month based on forecasted fuel prices and foreign exchange rates.

Remark: The previous Maximum Demand (MD) charge has now been restructured into separate Capacity and Network Charges under the new tariff framework.

Why This Matters More Than Ever

Under the new tariff structure, businesses especially belong to Medium Voltage (MV) TNB users will always experience high peak demand and will see higher charges on their bill. Many businesses run multiple high-load equipment simultaneously, experience short-duration spikes that increase MD and have no visibility on real-time energy usage.

Example showing MD charges before and after 1 July 2025

Maximum Demand: 758 kW
Maximum Demand Charge before 1 July 2025: RM 28,046.00
Capacity and Network Charges after 1 July 2025: RM 73,571.48 (162% increased as compared to previous)

The Best Solution: Solar + BESS with AI Energy Management System (EMS)

We are offering Solar and Battery Energy Storage Systems (BESS) combined with Zero Capex Model and AI-driven Energy Management System (EMS) help your business become a game changer.

✅Peak Shaving with BESS

• Discharge stored energy during peak periods
• Reduce your Maximum Demand (MD)
• Directly lower capacity charges

🤖 AI EMS Optimisation

• Monitors your load in real-time
• Automatically controls charging & discharging

⚡ Load Shifting

• Store energy during off-peak periods
• Use it during peak hours
• Reduce both network and energy-related costs

Take control of your energy cost today. Capacity and network charges are here to stay, and they will continue to impact your business bottom line. The question is, will you continue paying for inefficiencies, or start optimising them?

Let us help you assess your current load profile and identify savings opportunities. Start your energy optimisation journey today with BESS + AI EMS.

Sources:

TNB – About Capacity Charge, Network Charge and Automatic Fuel Adjustment (AFA)