Time for Sabah Electricity to overhaul its operations, says Shafie Apdal

PARTI Warisan leader Datuk Seri Mohd Shafie Apdal has urged Sabah Electricity to overhaul its operations, citing alleged mismanagement and high-cost initiatives as potential causes for the utility firm’s repeated need for substantial federal aid.

The Sabah opposition leader and Semporna MP noted that Sabah Electricity’s financial strategies appear to prioritise corporate interests over the well-being of Sabah residents.

He said the firm's current approach led to a “misalignment of priorities,” allowing large industrial players to benefit from lower electricity tariffs while households face disproportionately high costs.

“The recent statement from Sabah Electricity Chairman Datuk Seri Wilfred Madius Tangau about the utility’s financial liabilities underscores just how severe the mismanagement has been,” Shafie said in a statement.

“Sabahans are paying the price for decisions that prioritise profits for industrial entities like SBH Kibing Solar New Materials over affordable rates for the people.”

Tangau recently warned that the omission of RM866 million in federal subsidies for 2024 could hinder the utility’s ability to maintain a stable power supply.

The Tuaran MP also cautioned that the absence of these funds could lead to statewide blackouts, as the subsidies help bridge the gap between the actual power generation cost—43 sen per kWh—and the 34.52 sen per kWh that consumers pay.

Shafie also highlighted Sabah Electricity’s reliance on Independent Power Producers (IPPs) and criticised the firm’s RM 645 million move to build the Battery Energy Storage System (BESS), which he argued will only deepen its financial strain.

He described these initiatives as “short-term solutions” that fail to address Sabah’s fundamental power supply challenges.

“Instead of pouring resources into outdated IPP contracts and temporary fixes, SESB should focus on sustainable energy investments that would ultimately reduce electricity costs for Sabahans,” he added.

According to Shafie, the current tariff structure imposes a heavy financial burden on ordinary consumers who are already grappling with rising living costs. He argued that this disparity has worsened SESB’s financial issues while placing undue pressure on local households.

Shafie also urged the Tenaga Nasional Bhd (TNB) which owns an 80% stake in Sabah Electricity to absorb its financial liabilities, adding that TNB has consistently reported significant profits over the years.

“As the majority shareholder, TNB should take responsibility for SESB’s debts,” he said, adding that a new direction focused on transparency and responsible management is essential for the utility’s long-term sustainability.

“Sabah Electricity needs to put public welfare at the forefront and break the cycle of financial mismanagement that has burdened our state and people for too long,” he said. - November 6, 2024