How to Cut Power Use During Heatwaves: Expert Tips

MALAYSIA, 11 OCTOBER 2026 —

Malaysia’s Electricity Bills Under Pressure as El Niño, Fuel Costs and Rising AC Use Push Households Toward 800 kWh Threshold

Malaysian households face a double squeeze this year as soaring temperatures driven by El Niño push electricity consumption higher, risking higher bills for those crossing the 800 kWh monthly threshold—and exposing them to fuel price volatility under the Automatic Fuel Adjustment (AFA) mechanism.

With Suruhanjaya Tenaga and TNB warning of prolonged hot and dry conditions into early 2027, energy experts say even small daily adjustments to air-conditioning use could mean the difference between staying below the AFA exemption and facing surcharges, while global fuel market shifts add another layer of uncertainty.

The stakes are clear: Malaysia’s energy tariff structure ties household costs directly to consumption levels, with those exceeding 800 kWh per month losing a RM10 retail charge exemption and 8% service tax relief from September to December 2026. But the challenge goes beyond mere usage—it’s about managing how appliances respond to heat. Refrigerators, freezers, and especially air conditioners work harder in hotter weather, with even incremental changes in runtime adding up.

A single extra hour of AC use per night translates to 30 additional operating hours in a month, potentially pushing a household just below the threshold into the higher-cost bracket.

El Niño’s impact is already being felt. The climate phenomenon, marked by unusually warm Pacific Ocean temperatures, is expected to persist into early 2027, according to MET Malaysia. While its effects vary across regions, prolonged heatwaves and droughts typically increase reliance on cooling systems. In Malaysia, where average temperatures have been climbing, the combination of higher demand and potential disruptions to hydropower generation—if droughts reduce water availability for hydroelectric plants—could strain the grid.

The International Energy Agency has previously noted that such conditions often lead to greater dependence on fossil fuels for power generation, pushing up costs that may eventually filter down to consumers through mechanisms like AFA.

For now, the focus for households is on immediate action. TNB recommends setting air conditioners to 24°C as an energy-efficient target, warning that lower settings do not cool rooms faster but instead force units to run longer. Fans, which consume far less electricity than ACs, can supplement cooling when temperatures are moderate, while blocking afternoon sunlight with curtains or blinds reduces the heat entering homes in the first place.

Even small adjustments—such as running ovens or dryers during cooler parts of the day—can ease the load on cooling systems. "The aim is to avoid making the air conditioner work harder than necessary," TNB’s guidance emphasizes, noting that unnecessary cooling not only drives up bills but also increases wear on appliances.

The 800 kWh threshold is a critical dividing line. Households consuming below this level are currently exempt from AFA adjustments, which include a RM10 retail charge and 8% service tax, but those exceeding it face full exposure to fuel price fluctuations. The mechanism, overseen by Suruhanjaya Tenaga, adjusts monthly based on generation costs—including fuel prices, power-purchase agreements, and renewable energy displaced costs—with global fuel markets and foreign exchange rates playing a key role.

TNB has confirmed that these external factors are beyond household control, but consumption patterns are not. "Higher surrounding temperatures can make a refrigerator work harder to stay cold," the utility notes, adding that even small inefficiencies accumulate over time.

Smart meters and digital tools offer a way to track usage in real time. TNB’s myTNB platform provides an Energy Budget feature for eligible customers, allowing them to monitor daily consumption patterns. While smart meters cannot pinpoint which appliance is driving higher usage, they can reveal when spikes occur—helping households correlate increased demand with longer AC runtime or other factors.

For those on Time of Use (ToU) pricing, shifting high-consumption activities to off-peak hours (after 10 p.m. on weekdays and all weekend hours) can reduce energy charges, though it does not lower total consumption. Still, TNB stresses that the most significant savings come from reducing unnecessary cooling hours and optimizing appliance efficiency.

Maintenance also plays a role. Dirty air filters or restricted airflow force ACs to work harder, increasing energy use. TNB advises regular upkeep to ensure systems operate at peak efficiency. Yet even with these measures, the broader energy landscape remains volatile. El Niño’s influence extends beyond Malaysia, potentially tightening global fuel markets as droughts reduce hydropower output and heatwaves drive up cooling demand worldwide.

While Malaysia’s AFA adjustments are tied to domestic generation costs, the ripple effects of international energy price movements could still create upward pressure on household bills—especially if fuel costs rise sharply.

For now, the message from energy regulators is clear: households must take proactive steps to manage consumption. "What you can control more directly is how many kWh your household uses to stay comfortable," TNB’s guidance states. With El Niño’s heatwave conditions expected to persist, the coming months will test whether Malaysians can balance comfort with cost—without letting their bills climb beyond the 800 kWh threshold and into the higher-cost bracket.

The choice, ultimately, lies in how long the AC runs, how efficiently it operates, and whether small daily adjustments can prevent a monthly consumption spike that could cost hundreds of ringgit in the long run.

Related: Malaysia