Understanding how fuel costs influence electricity tariff, and what it means for you.
AFA mechanism promotes more transparency, cost-reflective, cost-efficient and reduce the timing gap in fuel prices and foreign currency exchange.
When fuel price increase/decrease, AFA will reflect accordingly.
In summary, AFA mechanism helps to better manage the fuel price volatility.
The fuel prices and exchange rate outlook includes three (3) scenarios; (i) base case (emerging conflict), (ii) moderate case (escalating conflict), and (iii) high case (severe conflict). The scenarios incorporate the use of alternate fuels (based on latest forecast price) to reflect the potential impact of the geopolitical event (US-Israel-Iran conflict), including fuel prices volatility and potential disruptions or shortages in gas and coal supply.
