ON Feb 1, 2026, Sabah’s average base electricity tariff has been revised from 34.52 sen to 39.70 sen per kilowatt hour, an increase of roughly 15 per cent.
The revision has drawn attention across the State, not simply because bills will rise, but because it raises a wider question: how long can electricity be priced below its actual cost?
The estimated cost of supplying electricity (~45.08 sen per kilowatt hour) remains higher than the revised tariff (39.70 sen per kilowatt hour), and the Federal Government’s RM849 million in subsidies helps cover that gap, meaning consumers are still not paying the full cost of supply.
This context matters. The revision is not a sudden policy shift but part of a structural adjustment. Pricing electricity significantly below cost for extended periods limits the utility provider’s ability to reinvest in generation, transmission, and reliability improvements. A power system cannot remain financially constrained while being expected to modernise and expand.
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