FINANCE Minister II Senator Datuk Seri Amir Hamzah Azizan said following the transfer of electricity supply regulation authority to the Sabah government on Jan 3, 2024, the Federal Government will provide a subsidy of RM3.54 billion over the next seven years.
This commitment is based on projections originally provided by Sabah Electricity Sdn Bhd (SESB), taking into account the utility's past expenditure trends, including a subsidy of RM500 million in 2020.
Amir Hamzah said this during his address on the ongoing fiscal challenges and strategic measures during the tabling of the 2024 Additional Supply Bill and development budget proposals in the ministry’s winding up speech in the Dewan Rakyat today.
He explained, as of December 2024, the Federal Government has already disbursed RM507 million in electricity subsidies to Sabah Electricity, following claims that were reviewed and validated by the Electricity Commission of Sabah (ECoS).
Additionally, the government has approved an RM162 million payment for the Imbalance Cost Pass-Through (ICPT) for the period between June and December 2023.
Furthermore, a moratorium on loan repayments by Sabah Electricity to the Federal Government, estimated at RM65 million, has also been granted.
“For 2025, the Federal Government has allocated RM700 million for electricity subsidies, an increase of RM193 million from the RM507 million allocation in 2024.
“This is part of a broader effort to ensure ongoing collaboration and shared responsibility as SESB transitions to the Sabah state government, aiming to improve electricity services and meet operational needs,” the minister said.
In line with the Sabah State Government’s desire to take full control over electricity supply regulation, it is crucial for the state to strategically plan the future of the electricity industry to ensure sustainable development, Amir Hamzah added. – March 3, 2025
