KOTA KINABALU: Electricity tariffs in Sabah and Labuan are set to increase by just over five sen per kWh on Sunday (Feb 1).
Sabah Electricity said that the revision, carried out under the Incentive-Based Regulation (IBR) framework in line with the Electricity Supply Enactment 2024, will raise the average basic tariff from 34.52 sen to 39.70 sen per kilowatt-hour (kWh).
In statement on Saturday (Jan 31), it said domestic consumers using up to 600 kWh monthly (about 85% of users) would only see minimal increases of up to RM27, while small commercial users are expected to face an increase of RM4 to RM24, adding that the tariff review took into account the welfare of domestic users and small businesses.
The review is the first in 12 years in Sabah since 2014 despite the escalating cost producing electricity.
Sabah Electricity said that the move was necessary to address rising operating and maintenance costs, fund infrastructure investments and support the government's policy of gradually phasing out subsidies.
For the second regulatory period the company said the actual average cost of electricity supply is estimated at 45.08 sen per kWh, higher than the approved revised tariff. To bridge the gap, the Federal Government will provide RM849mil in subsidies over two years (2026–2027).
Officials said that the adjustment is crucial for the long-term resilience of the utility company and the electricity grid, ensuring reliable supply for households and businesses.
Meanwhile, rebates under the e-Kasih programme will continue for hardcore poor households, while discounts remain in place for welfare homes, houses of worship and educational institutions.
A 10% discount will also be introduced for the agriculture, aquaculture and fisheries sectors to support food security.
