Sabah Electricity chief meets finance ministry over subsidy woes

Tangau also met finance ministry secretary-general Johan Mahmood Merican in Parliament today to appeal for the subsidies to be maintained.

“I explained Sabah Electricity’s cash flow so that the finance ministry can help channel at least RM280 million in electricity subsidy before the end of this year, and another RM280 million early next year.

“This is to prevent a drastic disruption of power supply in Sabah. I will do all I can to ensure Sabah does not suffer a statewide blackout in January,” the Upko MP said in a Facebook post.

Last week, Tangau said he received a letter from the Energy Commission of Sabah informing him that the additional RM866 million electricity subsidy given to Sabah Electricity last year would not be considered this year because of fiscal constraints.

The Tuaran MP said Sabah could face a statewide blackout from January if this were the case, adding that funds allocated in the 2025 federal budget to subsidise Sabah Electricity’s operations were insufficient.

On Saturday, seven districts in eastern Sabah – Sandakan, Kinabatangan, Beluran, Kunak, Semporna, Lahad Datu and Tawau – experienced a blackout which lasted for several hours.

Semporna, Lahad Datu and Tawau had gone without electricity for more than five hours following the blackout, which started at noon. The disruption also led to water cuts as water treatment plants in the affected districts were unable to operate.

Since 2014, Sabah’s electricity tariff has been fixed at a subsidised rate of 34.52 sen per kWh, but the cost of power generation and procurement has increased.

Sabah Electricity generates only 20% of the state’s power and relies on independent power producers for the remaining 80% at a higher cost, creating a financial gap covered by federal subsidies.