TAWAU: The State Government will monitor the impact of electricity tariff increases on consumers following the implementation of revised rates in Sabah and Labuan effective Feb. 1 (Sunday).
Chief Minister Datuk Seri Hajiji Noor said the increase would be minimal and not impose a significant burden on them.
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“We will always monitor the impact, but I believe the impact will be small. If someone is currently paying RM100, they will only add perhaps RM15,” he said after officiating the Sekolah Agama Negeri (SAN) Apas Balung at Taman Sawit, Balung, Sunday.
“It will not be too burdensome if it is RM15 and we get good electricity supply. This is the rationale behind the tariff increase,” he added.
Hajiji was responding to questions about the implementation of Sabah Electricity Sdn Bhd’s (SE) revised electricity tariff, which will see an adjustment from the current base average rate of 34.52 sen/kWh to 39.70 sen/kWh.
Hajiji said the new rates were approved by the State Cabinet after taking into account current needs.
“The tariff in Sabah is quite low compared to peninsula. We are only increasing by five sen or 15 per cent and this is not overly burdensome to ordinary people, who make up about 70 to 80 per cent of Sabah’s population.
“This cannot be avoided because we are bearing high costs. There are many things now, so we need to address all of this.”
He said the Federal Government currently provides subsidies for electricity supply in Sabah amounting to approximately RM700 million annually or RM3.5 billion over five years.
“We cannot continue like this indefinitely. If we increase slightly, just five sen, it can reduce the subsidy given by the Federal Government,” he said.
The State Cabinet agreed to the proposal submitted by the Energy Commission of Sabah and SE after considering the increased operational costs of power generation in the State.
The new tariff represents a five sen increase per kilowatt-hour, translating to about a 15 per cent rise for consumers.
However, Hajiji said that for typical households, this would mean an additional cost of around RM15 on a RM100 electricity bill.
