The cost of electricity in Peninsular Malaysia will be maintained until 2020 while rates for Sabah and Labuan are set to change in mid-2018.

According to Energy, Green Technology and Water Minister Maximus Ongkili, capping electricity cost was the government's sincere effort to reduce the burden of the rakyat.

"The pledge to maintain the current electricity tariffs clearly demonstrates the sincerity and concern of the government, which always places the welfare and interests of people as its most utmost priority.

"This is in line with the government's unwavering efforts to reduce the burden of the rising cost of living of its citizens," he said, according to New Straits Times.

Maximus said this was decided by the Cabinet, which also agreed to subsidise Peninsular Malaysia electricity users close to RM1 billion.

An allocation of RM1.631 billion for similar subsidies has been put aside for Sabah and Labuan for the period of March 2015 until June 2018.

Previously, Maximus said Sabah Electricity Sdn Bhd (SESB) - which is 80 percent owned by TNB - was on the verge of bankruptcy.

SESB's predecessor, the Sabah Electricity Board, was once owned by the Sabah government but was federalised in 1984.