Tariff Rates

The Government has approved a revision on the electricity tariff for Sabah and W.P. Labuan effective 1st January 2014. This revision is a continuous measure to enable SESB to meet the increasing costs of supply since 1986. The revision will assist SESB in addressing the following challenges:

• Increase in operation & maintenance costs;
• High infrastructure cost for supply reliability and quality improvement; and
• Government policy for subsidy rationalization, including gradual reduction of expensive fuel oil subsidies (e.g. diesel & oil subsidies).

Following the last tariff revision in 2011, SESB has undertaken various initiatives to continuously improve the security and reliability of electricity supply in Sabah. There has been improvement achieved by SESB, among others is the reduction in System Average Interruption Duration Index from 687 minutes in 2010 to 381.27 minutes as of November 2013. However, further improvement needs to be done to meet rising demands and support Sabah's economic growth.

• Domestic : average increase of 3.98 sen/kWh or 15.5%
• Commercial : average increase of 5.83 sen/kWh or 17.6%
• Industrial : average increase of 5.00 sen/kWh or 17.2%

Among the highlights of this tariff revision are:

Protection of Low & Medium Income Domestic Consumers

• No change in tariff rates for 62% or over 260,000 of Domestic consumers with monthly consumption of 300 kWh and below
• Minimal increase in monthly bills for consumers in the 1-200 kWh range of up to 80 sen only*
• Consumers of consumption range 201— 300 kWh : increase in monthly bills from RM0.85 to RM5.80*

The postponement of the 2011 tariff revision for 75% of the Domestic consumers (with monthly consumption below 350 kWh) was carried out in the form of an adjustment in monthly bills. This postponement or adjustment of bills will end on 31/12/2013

Protection of Low & Medium Income Domestic Consumers

• Energy efficiency measures will help to mitigate impact of the tariff review, while improving the overall efficiency of the State and contribute to a sustainable environment.
• More attractive peak/off peak tariffs compared to flat rate tariffs to encourage consumers to shift their usage to off peak period.
• New options for flat rate tariff consumers such as Off Peak Tariff Rider (cheaper rate during off peak period); and Sunday Tariff Rider (no Maximum Demand charge for usage on Sundays)

Reduction of Consumer Connection Charges

New consumers applying for electricity supply will be given a reduction of up to 50% of the project cost where conditions are met. Please visit SESB http://www.sesb.com.my for further details.

Connected Load Charges

Connected Load Charge (CLC) penalty for medium voltage consumers whose actual maximum demand is less than 75% declared maximum demand will be limited to a maximum of 5 years period, after a grace period of 1 year from date of connection of supply.

Re-Categorization of Water Treatment, Distribution And Sewerage Plants

Re-categorization of water treatment plants, water distribution and sewerage plants from commercial tariff category to industrial tariff category which is lower.

Current Features That Are Retained

• 10% discount for approved charitable/welfare organizations, places of worship and education institutions (fully or partially funded by Government). The discount is also extended to mission schools and independent schools
• Waiver of meter rental

To promote the use of renewable energy in Malaysia, the Government has implemented Feed in Tariff (FiT), a new mechanism under the Renewable Energy Act 2011 Effective from 1st January 2014, the Government will collect an additional 1.6% on consumers' monthly electricity bills to be paid to the "Kumpulan Wang Tenaga Boleh Baharu" (Renewable Energy Fund). Domestic consumers with usage 300kWh and below will be exempted. We will strive to continuously improve the quality and reliability of electricity supply in Sabah and services to our consumers. We value your understanding and trust.