KOTA KINABALU – Sabahans will have to wait at least five more years to see power supplier Sabah Electricity Sdn Bhd (SESB) returned to the state government after it was controversially given to the federal government more than three decades ago.
Deputy Energy and Natural Resources Minister Ali Biju said Putrajaya remains committed and ready to talk about the handover once a proper direction is set, with steering and technical committees to look into the matter.
“The handover process will take a long time as it involves legal, financial and technical aspects between both federal and state governments,” he said at the Dewan Rakyat in response to a question from Yeo Bee Yin (PH-Bakri) today.
On the legal aspect, Ali said several actions need to be taken before granting legal authority on power supply to the state government through the gazetting of Article 94 (C) of the federal constitution.
For instance, he said, amendments need to be made on the Renewable Energy Act 2011 and the Sustainable Energy Development Authority Act 2011.
He added that state laws related to electricity also need to be made and they must correlate with the federal acts.
On the financial aspects, Ali said several matters need to be attended to, such as SESB’s sustainability and ability to provide reliable power supply after the Sabah government takes over responsibility of the utility firm’s upkeep.
He stressed that the federal government now needs RM700 million a year to subsidise SESB and Sabah will have to take responsibility for this later.
The state also needs to establish a regulatory body to take on the role of industry regulator, replacing the Energy Commission and Sustainable Energy Development Authority (Seda).
Ali said the federal government, through the Energy Commission, will continue its practice of publishing for the public the Generation Development Plan, agreed at the meeting of the Planning and Implementation Committee for Electricity Supply and Tariff for Peninsular Malaysia and Sabah, after it is approved by the cabinet.
In 1984, the state government under then chief minister Tan Sri Mohd Harris Salleh had handed over the Sabah Electricity Board (now known as SESB) to the federal government in a bid to improve power generation in Sabah.
The Malaysian government later handed over SESB to Tenaga Nasional Bhd (TNB).
However, despite capital injections from the federal government, SESB continues to suffer losses and has not resolved Sabah’s power woes.
The former Pakatan Harapan government has initiated the transfer of ownership back to Sabah, with plans to complete the handover in two years.
Two task forces – on related financial and technical matters – were set up to realise the handover.
Currently, TNB owns 82.75% of SESB, while the state government holds the remaining stake. – The Vibes, December 7, 2020
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