Sabah Electricity’s future depends on MOF, KeTTHA and TNB
KUALA LUMPUR: The future of Sabah Electricity Sdn Bhd (SESB) will be determined following an ongoing discussions between the Energy, Green Technology and Water Ministry (KeTTHA), Ministry of Finance and Tenaga Nasional Bhd (TNB).
SESB’s current average tariff is 34.52 sen/kwh while cost of energy generation is 56.50 sen/ kwh. Hence, the federal government has been subsidising SESB’s fuel costs, primarily diesel, medium fuel oil and gas. Datuk Seri Dr Maximus Ongkili, KeTTHA Minister
In a statement yesterday, KeTTHA Minister, Datuk Seri Dr Maximus Ongkili, said the discussions wee crucial, especially since SESB continued to make losses and was on the verge of insolvency.
“SESB’s current average tariff is 34.52 sen/kwh while cost of energy generation is 56.50 sen/ kwh. Hence, the federal government has been subsidising SESB’s fuel costs, primarily diesel, medium fuel oil and gas,” Ongkili said, adding the federal government has also been providing the bulk of SESB’s capital expenditure (capex).
TNB owns 82.75 per cent of SESB, while the rest of the stake is held by the Sabah State Government.
Since 2012, RM4.2 million has been spent by the federal government to boost SESB’s operation, and that both TNB and SESB have also spent their portions on capex.
Ongkili said that through these efforts, the system annualised interruption duration index has been cut from 777 minutes/ customer/year in 2014 to 311 last year, and was set to be further reduced to 280 by year-end.
He said SESB also has been asking for tariff revision since its last review in 2014, but was also the federal government’s duty to ensure tariff was fair and affordable to consumers.
“We also want to ensure that the tariff revision is reflective of the quality of power delivered,” he said in responding to the comments by TNB Chief Executive Officer Datuk Seri Azman Mohd.
Azman had said they were discussing on the future of SESB and an agreement was expected by the new year to determine the best option. — Bernama