Tangau expressed concern over insufficient funds allocated in the 2025 federal budget for Sabah’s power subsidy, The Borneo Post reported.

“I don’t think people understand how critical this problem is. The federal government cannot simply say they have no money now,” he was quoted as saying.

Tangau’s concerns come after a letter from the Energy Commission of Sabah informed him that the additional RM866 million electricity subsidy given last year would not be considered this year due to fiscal constraints.

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

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

Tangau, who is also the Tuaran MP, said rising costs, particularly due to increased diesel consumption to offset delays in new power generation projects, have widened the cost gap.

He also said delays in projects like the 66MW Tenom Pangi hydro plant, impacted by a landslide in 2022, have led to heightened diesel usage to meet immediate power needs.

Tangau added that the Sabah government had sent an appeal letter to Putrajaya and the finance ministry to address the funding shortfall.

“Without immediate support, we won’t have the money to pay the IPPs and fuel suppliers. The fuel supply to the power plant will then be blocked and the entire system will collapse,” he said.

Essential services like hospitals, airports and water supply systems are under threat, he added.

Tangau went on to say that a statewide blackout would threaten not only energy but also national security.

“Imagine what would happen to the security forces, the medical and healthcare system, airport operations, water supply, telecommunications, transportation systems and the entire government service network without electricity,” he said.