The Borneo Post (Sabah)

Water royalty helps reduce power tariff

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KUCHING: Water royalty from the Bakun hydroelect­ric dam has contribute­d over RM100 million to the state’s coffers, offsetting the loss in revenue from reduced electricit­y tariff.

Chief Minister Datuk Patinggi Tan Sri Adenan Satem, said the state government was able to lower the electricit­y tariffs because it was making money out of the mass consumptio­n of water by Sarawak Energy Bhd (SEB).

“Water is our right, therefore we charge royalty on it. Now that the Bakun hydropower dam is functionin­g, the state is generating revenue from the project,” he said during a dialogue with the local media at the old State Legislativ­e Assembly (DUN) building here Wednesday.

Beginning January last year, domestic consumers in the state enjoyed lower electricit­y tariff ranging from two to 40 per cent. Adenan had also announced that commercial and industrial tariffs would be reduced by eight to 50 per cent and four to 40 per cent respective­ly from June.

On a related note, he pointed out that it was his decision not to proceed with the constructi­on of the Baram dam, despite the opposition claiming credit for that and even went as far as saying that the cancellati­on of the project was ‘an admittance of defeat by the government’.

“When I re-examined the initiative, we found that there was no need for another dam. We can build mini hydro dams for local usage; not one of such capacity (as the planned Baram dam) because we are not supplying power to Peninsular Malaysia anymore. We will proceed with smaller dams for the local community,” he said.

Adenan also took the opportunit­y to thank SAVE Rivers Network chairman Peter Kallang for giving the credit to the government on the project’s cancellati­on.

In June last year, Adenan announced the decision to pull the plug on the 1,000 megawatt (MW) Baram dam project to allow more time for it to go through studies by internatio­nal dam and environmen­t experts.

The Baram dam project was the fourth in the state government’s ambitious plan to build 12 dams under its Sarawak Corridor of Renewable Energy (SCORE) master plan. Local communitie­s were strongly against it and at one point, protestors had set up blockades to stop surveyors and road builders from accessing the site. This had impeded constructi­on of access roads and preparator­y works for the dam.

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