KOTA KINABALU: The electricity tariff rates for Sabah Electricity consumers will be revised starting Feb 1, 2026.
The tariff has been adjusted, with the average base tariff increasing from 34.52 sen per kilowatt-hour (kWh) to 39.70 sen/kWh.
About 85 per cent of domestic consumers with monthly usage of up to 600 kWh will experience only a minimal increase of up to RM27, with monthly bills ranging from RM5 to RM206.
For the hardcore poor, the e-Kasih rebate of up to RM40 per month will continue to be provided to registered Heads of Household.
The tariff review is carried out under the Incentive-Based Regulation (IBR) framework in accordance with Section 39 of the Electricity Supply Enactment 2024, to better reflect the rising actual costs of electricity supply.
According to a media statement, the tariff adjustment follows increases in operating and system maintenance costs, the need for infrastructure investment, and the Government’s policy of gradually reducing subsidies.
The move is viewed as crucial to ensuring the viability of the utility company and the resilience of the electricity supply system in meeting Sabah’s current and future needs.
For the Second Regulatory Period (Regulatory Period 2 – RP2), the average actual cost of electricity supply is estimated at 45.08 sen/kWh.
However, the approved tariff remains at 39.70 sen/kWh, with the Federal Government covering the difference through subsidies amounting to RM849 million over a two-year period from 2026 to 2027.
Electricity consumers in Sabah and the Federal Territory of Labuan have enjoyed the same tariff rates since 2014, despite rising electricity supply costs, resulting in a high reliance on government subsidies.
At the same time, the interests of domestic users, small traders, and Micro, Small and Medium Enterprises (MSMEs) have been taken into consideration.
For small commercial users, the protected electricity consumption block has been extended to 500 kWh per month, covering bills between RM15 and RM199. More than half of commercial users are expected to fall within this category and will only face minimal increases of between RM4 and RM24.
The 20 per cent Off-Peak Tariff Rider (OPTR) discount for off-peak usage will also continue for low-voltage commercial and industrial users to help reduce cost burdens, particularly for small-scale businesses.
The State Government will also maintain a 10 per cent discount for welfare homes, houses of worship and registered educational institutions throughout the tariff revision period, reflecting its concern for social welfare and community development.
In addition, a new 10 per cent discount has been introduced for the agriculture, aquaculture and fisheries sectors to support food security and supply chain stability in the state.
Through this tariff revision, continued investment in the maintenance and upgrading of the electricity network can be sustained, helping to reduce supply disruptions and support the development of new infrastructure, including a stronger and more sustainable grid system.
The move is considered essential to ensuring a more stable and reliable electricity supply for the public and the business sector in Sabah.
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