Tangau, who is SE chairman, said without federal support through government subsidies, SE would face financial challenges as well as continued problems with erratic power supply.

“Sabahans are worried that there is no commitment for subsidies in the 2025 budget. Can you imagine what will happen to our frontliners such as our security services, healthcare and airport workers, telco providers and our water treatment plants without electricity?

“Even if the government has fiscal and financial constraints, isn’t electricity a priority? Are other commitments such as helping foreign countries more important than our country’s own power supply?

“Isn’t Sabah’s problem the country’s problem too?” Tangau asked while debating the Supply Bill 2025 in the Dewan Rakyat.

He said that from 1963 to 1984, Sabah bore the costs of electricity infrastructure, but 40 years of federal management after that had left the power infrastructure incomplete.

Since Sabah resumed managing the electricity, Tangau said, the state had faced significant challenges, with power outages becoming more frequent in both urban and rural areas.

He said some locations experienced hundreds of minutes of outages each month. SE, he said, was operating at a loss due to the high cost of generating electricity – 43 sen per unit – while customers were charged only 34 sen per unit.

Tangau said another problem was widespread electricity theft, which cost SE around RM200 million a year. He said much of this theft happened in illegal settlements, where enforcement was difficult due to legal and bureaucratic delays.

He said in one area near Tuaran, SE lost about RM2 million yearly because of stolen electricity.

“Energy security is not just about keeping the lights on, it’s a matter of national security. The (federal) government’s budget should reflect the urgency of the situation, ensuring SE receives the support needed to maintain stability and growth in Sabah.”