CM: State Government to monitor impact of electricity tariff hike on consumers
TAWAU: Sabah will monitor the impact of the electricity tariff increase on consumers following the implementation of the rate review in Sabah and Labuan, effective February 1, 2026.
Chief Minister Datuk Seri Hajiji Noor said the increase experienced by consumers would be minimal and not burdensome.
"We will constantly monitor the impact, but I believe the effect is only slight. If one currently pays RM100, the increase is only be about RM15.
"So, it is not very burdensome if an additional RM15 ensures a stable electricity supply , that is the rationale behind the tariff hike," he told reporters after officiating the Apas Balung State Religious School (SAN) at Taman Sawit Balung on Sunday.
He was responding to questions regarding the Sabah Electricity (SE) tariff review beginningFebruary 1, 2026, which involves an adjustment from an average base rate of 34.52 sen/kWh to 39.70 sen/kWh.
The Chief Minister explained that the new rate was approved by the State Cabinet, taking into account the current needs in Sabah.
"Tariffs in Sabah are relatively low compared to Peninsular Malaysia. We are only increasing it by five sen or 15 percent, which is not very burdensome for the ordinary citizens who make up about 70 to 80 percent of the population in Sabah.
"This is unavoidable because we are bearing high costs for various factors now. It is necessary for us to overcome these challenges," he said.
Hajiji said that the Federal Government currently provides an electricity subsidy for Sabah amounting to approximately RM700 million annually or RM3.5 billion over five years.
"We cannot continue this way indefinitely. A small increase of five sen can help reduce the subsidies provided by the Federal Government," he added.
He said that the State Cabinet agreed to the proposal submitted by the Energy Commission of Sabah (ECoS) and SESB after considering the rising operational costs of power generation in the state.
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