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THE increase in electricity tariffs in Sabah and the Federal Territory of Labuan, which officially took effect on 1 February 2026, should be reviewed. The government should not look at this issue only from the perspective of covering operating costs and upgrading the electricity supply system. 

It must also consider the direct impact on the monthly expenses of ordinary households.

The average base tariff has been adjusted from 34.52 sen/kWh to 39.70 sen/kWh, an increase of about 15 percent. On paper, this may appear moderate. However, the experience of some consumers suggests that the real impact is much greater, especially when the final bill received rises sharply.

On social media, many consumers have expressed shock over electricity bills that are much higher than in previous months. Some even claimed that their bills had almost doubled. 

Although these claims still need to be verified using official data, the government should not simply dismiss them. When people’s actual experience does not match official projections, the policy needs to be reviewed.

At a time when the cost of living remains high, a sudden rise in electricity bills can seriously affect household budgets. For low- and middle-income families, an additional RM50, RM100 or RM150 a month is not a small amount. It may force families to reduce spending on food, children’s education, transport, healthcare, savings and other daily needs.

From a microeconomic perspective, higher electricity bills reduce household disposable income. When more money is used to pay utility bills, less money is available for other goods and services. This effect can eventually spread to small traders, grocery shops, markets, food stalls and the local economy.

For this reason, the government should consider not implementing the full tariff increase at the current rate. As a fairer step, the increase could be reduced by half for now. 

If the current increase is around 5 sen/kWh, the government could consider raising it by only about 2.5 sen/kWh temporarily.

This approach is more reasonable. It would still allow improvements in the energy sector to continue, while reducing the cost shock faced by consumers. Put simply, the people are not rejecting efforts to improve the electricity system. 

What they are rejecting is being burdened too suddenly.

The Government should also conduct an independent tariff impact audit using actual billing data before and after 1 February 2026. This audit should examine how many users experienced only a small increase, how many faced a moderate increase, and how many saw an unusually sharp rise.

In addition, all cases where bills increased by more than 50 percent compared with the previous six-month average should be reviewed automatically. Consumers should not have to carry the burden of filing individual complaints if the system itself can detect abnormal increases.

Targeted assistance should also be expanded. Rebates for the hardcore poor are important, but electricity bill pressure is not felt only by this group. B40 households, lower M40 families, pensioners, large families, small traders, farmers, fishermen and households with medical-related electricity needs should also be given attention.

The government must also set clear performance indicators for Sabah Electricity. If the people are asked to pay more, they have the right to see results. Power interruptions must be reduced. The grid must become more stable. Consumer complaints must be resolved quickly.

Progress reports should also be published regularly.

This issue is not about rejecting energy sector development. The real issue is the rate and manner in which the tariff increase is being implemented. A sharp increase can pressure households, reduce purchasing power and weaken consumer spending.

Therefore, the Government should review the implementation of the electricity tariff in Sabah and Labuan. The full increase should be postponed, and a half-rate increase should be considered as an interim measure until the impact audit is completed. 

A good energy policy should not only ensure supply stability. It must also be fair to the people who pay the bill every month.

Dr Mohamad Isa Abd Jalil

Research Fellow, Centre for Economic Development and Policy (CEDP) Universiti Malaysia Sabah

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my