Sabah electricity tariffs to rise tomorrow under new regulatory framework

 

Sabah’s electricity tariffs will rise from tomorrow under a new regulatory framework, with authorities pledging subsidies and targeted discounts to ease the impact on households and small businesses. Pic courtesy of SESB

KUALA LUMPUR: Sabah's electricity tariffs will rise from tomorrow under a new regulatory framework, with authorities pledging subsidies and targeted discounts to ease the impact on households and small businesses.

In a statement today, Sabah Electricity said the revised rates would take effect on Feb 1 under an Incentive-Based Regulation (IBR) scheme, citing higher operating and maintenance costs, the need for infrastructure investment, and the federal government's gradual subsidy-reduction policy.

The average base tariff will increase from 34.52 sen per kilowatt hour (kWh) to 39.70 sen/kWh. The utility said the actual cost of supplying electricity during the second regulatory period for 2026–2027 is estimated at 45.08 sen/kWh, with the federal government committing RM849 million in subsidies over the two years to bridge the gap.

"Consumers in Sabah and Labuan have paid largely unchanged tariffs since 2014, despite rising supply costs, a situation that has increased reliance on government support," the company said.

"The revision has been designed to be measured and responsible, aimed at ensuring a stable, reliable and sustainable power system while continuing to safeguard vulnerable groups."

Under the new structure, about 85 per cent of domestic users consuming up to 600 kWh a month – currently paying between RM5 and RM206 – are expected to see minimal increases of up to RM27.

Households classified as hardcore poor will continue to receive monthly e-Kasih rebates of up to RM40 for registered heads of families.

Small commercial customers will also be partially shielded, with protected consumption blocks extended to 500 kWh a month. More than half of such users, including grocery shops and small traders, are expected to face only modest bill increases of between RM4 and RM24.

A 20 per cent off-peak discount for low-voltage commercial and industrial users will remain in place to reduce costs for small operators, while registered welfare homes, places of worship and educational institutions will continue to receive a 10 per cent rebate.

Sabah's state government has also introduced a new 10 per cent discount for agriculture, aquaculture and fisheries to support food security and supply chains.

The company said higher revenue from the revised tariffs would fund maintenance and upgrades to the power network, reduce supply disruptions and support new infrastructure – including a stronger and more sustainable grid.

Consumers were urged to adopt energy-saving practices and take part in efficiency and renewable-energy programmes run jointly with the Energy Commission of Sabah.

Detailed tariff schedules and a bill-estimation calculator will be available on Sabah Electricity's website from Feb 1, while further information can be obtained through the regulator's portal or the utility's customer service channels. - NST