Malaysia

Long time before SESB ‘returns’ to Sabah, says deputy minister

Putrajaya expects it to take at least 5 years as it involves legal, financial, technical issues between federal and state governments

Updated 5 years ago · Published on 07 Dec 2020 9:19PM

Long time before SESB ‘returns’ to Sabah, says deputy minister
Deputy Energy and Natural Resources Minister Ali Biju says Sabahans will have to wait at least five more years to see power supplier Sabah Electricity Sdn Bhd returned to the state government after it was controversially given to Putrajaya more than three decades ago. – Wikipedia pic, December 7, 2020

by Jason Santos

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

Related News

Malaysia / 3h

Sabah does not agree to 200-litre diesel quota, forms special committee - Masidi

Malaysia / 1mth

Santiago pokes holes in data centre hype, asks: Who really benefits?

Malaysia / 1mth

Tsunami alert: Stay calm and obey instructions from the authorities – Hajiji (video)

Malaysia / 1mth

Sabah embarks on five-year initiative to document multiethnic heritage - Hajiji

Malaysia / 1mth

Anwar - Sabah's special grant interim payment increased from RM600m to RM1.5b

Malaysia / 1mth

Anwar to clarify Sabah 40 pct entitlement talks tomorrow

Spotlight

Malaysia

After Johor, the uncomfortable question for Anwar’s critics: Were we too impatient?

By The Vibes Says

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Opinion

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia

Tuition teacher sentenced to 105 years in prison and 70 lashes for raping daughter

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Aminuddin urges NS voters to weigh manifesto promising benefits for M40 and B40 groups

Malaysia

No need to resign, PM has absolute power if there is doubt – Ahmad Zahid

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

You may be interested

Malaysia

Three killed after lorry crashes into parked trailer on East-West Highway

Malaysia

Mechanic sentenced to 20 years and seven lashes for rape and armed robbery of teenager

Malaysia

Network School's business licences revoked, to cease operations tomorrow

Malaysia

Voters place greater emphasis on government performance than traditional political assumptions - INSAP

Malaysia

PM holds final authority on cabinet appointments - Minister

Malaysia

KWAP’s eFishery loss triggers governance review as Anwar backs full investigation

Malaysia

Azam Baki denies involvement in RM178.29 million contract linked to brother’s company

Malaysia

Anwar welcomes Andy Burnham as new UK PM, seeks stronger ties