Sesb Doesn T Decide On Power Tariffs In Sabah Says Chairman

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The authority to decide on matters concerning electricity tariffs now lies with the state Cabinet based on the recommendation of the Sabah Energy Commission.KOTA KINABALU: Sabah Electricity Sdn Bhd (SESB) does not have the power to raise or approve electricity tariff rates in the state, says SESB chairman Wilfred Madius Tangau.
He said after the Electricity Supply Bill 2024 was approved by the Sabah state assembly today, the authority to decide on matters concerning electricity tariffs lies with the state Cabinet based on the recommendation of the Sabah Energy Commission (ECoS).
Before this bill was approved, the matter was decided by the federal government and enforced by the Energy Commission (ST).
“I see that many are still confused over this matter to the extent that various parties are venting their anger towards SESB. Today’s Sabah state assembly sitting also showed that many elected representatives still do not understand this matter.
“SESB is a utility company involved in the business of supplying electricity to consumers. SESB merely implements what has been approved based on what has been regulated upon and enforced,” he said in a statement.
Earlier, the special Sabah state assembly sitting approved three bills for the state government to take over regulatory powers on energy and electricity supply from the federal government.
The Energy Commission of Sabah (Amendment) Bill 2024, Sabah Renewable Energy Bill 2024 and Electricity Supply Bill 2024 were passed by majority votes.
Tangau maintained that SESB should not be blamed when the ST said the electricity tariff adjustment in Sabah for Jan 1 to June 30 this year would be implemented under the imbalance cost pass-through (ICPT) mechanism.
“The ICPT tariff adjustment decision was beyond the jurisdiction of SESB,” he said.
ICPT refers to a mechanism under the Incentive-Based Regulation (IBR), which allows fuel costs to be adjusted every six months based on fluctuations in global fuel prices.
Under the latest implementation of ICPT, domestic users with a monthly electricity consumption of 1,500 kilowatt-hours (kWh) and below will not be imposed any surcharge.
Domestic users consuming more than 1,500 kWh a month will be subjected to a surcharge of 7.21 sen/kWh, the same surcharge applied for non-domestic consumers.
Meanwhile, ECoS has prioritised enhancing SESB’s operational capabilities, chief executive officer Abdul Nasser Abdul Wahid said.
He added that enhancing SESB’s financial capabilities is crucial for its sustainability.
“We have absorbed skilled workers from other agencies. We require approximately 90 staff, and over 70 positions have been filled. The remaining positions will be filled by recruits, all Sabahans,” he said during the handover ceremony here today.
ST chief executive officer Abdul Razib Dawood, said that the handover to ECoS covers oversight in economic, technical, and electrical safety aspects.
“The handover included information technology, software, and document transfers, along with the integration of ST staff into ECoS,” he said.
He said meticulous preparations are crucial to ensure no disruptions in supply or operations for users, licence holders, and industries in Sabah following the handover.
“ST is confident that ECoS is fully prepared for the power supply takeover in Sabah and will continue to provide support when necessary.
“Considering the federal government’s decision to retain control of power supply for Labuan, ST will set up an office there to ensure effective management of supply,” he said. - FMT

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