State Government will Monitor Impact of Electricity Tariff Hike on Consumers

1 February 2026

TAWAU: The Sabah State Government will closely monitor the impact of the electricity tariff increase on consumers following the implementation of the new rate review in Sabah and Labuan, effective 1 February 2026.

Chief Minister Datuk Seri Panglima Hajiji Noor said the increase would have only a minimal impact on consumers and would not be burdensome.

“We will continuously monitor the impact, but I believe the effect is relatively small. If someone currently pays RM100, the increase would be about RM15. This is not overly burdensome if an additional RM15 ensures a more stable electricity supply. That is the rationale behind the tariff adjustment,” he told reporters after officiating the Apas Balung State Religious School (SAN) at Taman Sawit Balung on Sunday.

He was responding to queries on the Sabah Electricity (SE) tariff review, which involves an adjustment of the average base rate from 34.52 sen per kilowatt-hour (kWh) to 39.70 sen per kWh.

Hajiji said the new rate was approved by the State Cabinet after taking into account Sabah’s current needs.

“Electricity tariffs in Sabah are still relatively low compared to those in Peninsular Malaysia. The increase is only about five sen, or 15 per cent, and this will not significantly affect ordinary citizens, who make up around 70 to 80 per cent of Sabah’s population.

“This adjustment is unavoidable as we are facing higher costs due to various factors. It is necessary for us to address these challenges,” he said.

He added that the Federal Government currently provides electricity subsidies for Sabah amounting to approximately RM700 million annually, or RM3.5 billion over five years.

“We cannot continue this arrangement indefinitely. A small increase of five sen can help reduce the level of subsidies borne by the Federal Government,” he said.

According to Hajiji, the State Cabinet agreed to the proposal submitted by the Energy Commission of Sabah (ECoS) and Sabah Electricity Sdn Bhd (SESB) after considering the rising operational costs of power generation in the state.

Meanwhile, commenting on SAN Apas Balung, Hajiji said he was impressed by the school’s rapid construction, which was completed within three months through contributions from various parties.

He said the completion of the school marked the beginning of its development, with further expansion to be supported by government assistance in the future.

The Chief Minister also praised the school management for its initiative in adopting Artificial Intelligence (AI) in its operations, in line with current educational developments.

“I am impressed. This is the first religious school to utilise AI. This is the direction we are heading in, where technology plays a major role — not only in mainstream education, but also in religious schools,” he said.

Hajiji further expressed the State Government’s support for the school management’s proposal to establish a religious secondary school to ensure continuity in religious education for students.

“It is an excellent proposal. There is strong demand within the Muslim community for religious secondary education in Sabah. Expanding such institutions is necessary, and this could eventually lead to the establishment of an Islamic university,” he added.

Those present at the event included Minister of Local Government and Housing and State Religious Affairs Exco Datuk Dr Mohd Arifin Mohd Arif, Minister of Education, Science, Technology and Innovation Datuk James Ratib, and Minister of Youth, Sports Development and Creative Economy Datuk Nizam Abu Bakar Titingan.

Later, the Chief Minister performed the Zohor prayers at Al-Ansar Mosque in Taman Sawit Balung and presented zakat contributions to eligible recipients.