Tariff revision to be implemented prudently to maintain reliable power, says Sabah Electricity

KOTA KINABALU (Jan 31): The review of electricity tariffs in Sabah will be implemented prudently and responsibly to ensure a stable, high-quality and sustainable power supply, while continuing to safeguard consumer welfare, said Sabah Electricity (SE).

The utility company, in a statement, said the revised tariff structure will take effect from February 1, 2026, under the Incentive-Based Regulation (IBR) framework to cover the cost of electricity supply, in line with Section 39 of the Electricity Supply Enactment 2024.

It said the tariff revision follows rising operational and maintenance costs of the electricity system, the need for continued infrastructure investment, and aligns with the government’s policy on the gradual reduction of subsidies.

“The move is seen as crucial to ensuring the long-term viability and sustainability of the utility provider, enabling the electricity supply system to remain resilient and capable of meeting both current and future demand,” said SE.

Under the revision, changes will be made to the electricity tariff structure and rates for Sabah Electricity consumers, with the average base tariff adjusted from 34.52 sen per kilowatt-hour (kWh) to 39.70 sen per kWh.

For the second Regulatory Period (RP2), the required average cost of electricity supply, or actual tariff, stands at 45.08 sen per kWh, compared to the approved revised tariff of 39.70 sen per kWh.

“The federal government remains committed to providing subsidies to cover the difference, with a total subsidy allocation of RM849 million for the two-year period from 2026 to 2027.

“Electricity users in Sabah and the Federal Territory of Labuan have been enjoying the same tariff rates since 2014, when the last revision was implemented,”said SE

“Since then, the cost of electricity supply has increased, but tariffs remained unchanged, resulting in a high reliance on government subsidies,” it added.

SE said the latest tariff review also takes into account the interests of domestic users, small traders and Micro, Small and Medium Enterprises (MSMEs).

About 85 per cent of domestic consumers use up to 600 kWh per month, corresponding to bills ranging from RM5 to RM206. They will experience only a minimal increase of up to RM27.

“For hardcore poor households, the e-Kasih rebate of up to RM40 per month will continue to be provided to Heads of Households registered under the e-Kasih system,” it said.

Meanwhile, for small commercial users, the protected electricity consumption block has been extended to 500 kWh per month, covering current bills between RM15 and RM199.

SE estimated that more than half of commercial users fall within this category and will see only minimal increases of between RM4 and RM24, including grocery shops and small businesses.

The Off-Peak Tariff Rider (OPTR), which provides a 20 per cent discount for off-peak electricity usage, will also continue for low-voltage commercial and industrial users to help ease the burden on small-scale traders.

“As a measure of concern for social welfare and community development, a 10 per cent discount for registered welfare homes, houses of worship and educational institutions will be maintained throughout the implementation period of the tariff revision,” said SE.

In addition, SE said the state government has introduced a new 10 per cent discount for the agriculture, aquaculture and fisheries sectors, collectively referred to as Agriculture, Aquaculture and Aquamarine (AAA), as part of efforts to support food security and supply chain stability.

“Through the tariff review, continued investment can be made in the maintenance and upgrading of the electricity network, helping to reduce supply disruptions and support the development of new infrastructure, including a stronger and more sustainable grid system.

“This is essential to ensuring a more stable and reliable electricity supply for both the public and the business sector,” said the utility company.

Consumers are also encouraged to practise energy efficiency and participate in energy-related programmes organised by the Energy Commission of Sabah (ECoS) in collaboration with Sabah Electricity, to help mitigate the impact of higher bills and support the use of renewable energy.

Further information is available on the ECoS website at ecos.gov.my.

Detailed information on the new tariff schedule can be obtained from the Sabah Electricity website at www.sesb.com.my.

Consumers will also be able to estimate their future monthly electricity bills using the Electricity Bill Calculator, which will be accessible from February 1, 2026.

For further enquiries, consumers are advised to contact SE via the hotline at 15444 or 088-515000, or through the Sabah Electricity mobile application.