SABAH has allocated RM50.9 million to exempt almost all electricity users from surcharge increases in the first half of 2025.
Chief Minister Datuk Seri Hajiji Noor said the decision, made during a recent State Cabinet meeting, will benefit 693,834 consumers, or 99% of electricity users in Sabah.
“This exemption is crucial to ease the burden on households and small businesses facing rising energy costs,” Hajiji said.
The subsidy applies to domestic users consuming up to 1,500 kWh per month (around RM677) and low-voltage non-domestic users, including SMEs.
High-consumption users, such as large-scale businesses, will continue to pay a surcharge of 4.06 sen/kWh.
To further address rising costs, Sabah has requested an RM278 million fuel subsidy from the federal government.
The federal government, which already subsidizes electricity in Sabah, will cover RM700 million annually in ICPT costs for 2025, up from RM 507 million in 2024.
The Imbalance Cost Pass-Through (ICPT) mechanism, introduced under Malaysia’s energy regulation framework, adjusts electricity tariffs based on actual fuel and generation costs, ensuring a stable power supply and balanced consumer affordability. – December 20, 2024
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