Resolve SESB debts before taking control, says Shafie
Published on: Thursday, January 04, 2024
By: Mohd Izham Bin Hashim
Shafie said the Government must also review the independent power producers (IPPs) in the State over concerns of inconsistent pricing and supply.
Kota Kinabalu: The State Government should negotiate with Tenaga Nasional Berhad (TNB) to absorb the debts in Sabah Electricity Sdn Bhd (SESB) and resolve any other financial matters before taking over its operations, said Datuk Seri Shafie Apdal.
The Senallang Assemblyman said SESB, which is now under TNB, also receives a subsidy from the Federal Government amounting to over RM600 million per year.
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“How is Sabah going to sustain these payments when it takes over SESB operations?” he asked when debating an enactment to amend the Sabah Energy Commission 2023 at the State Assembly.
Shafie said TNB, which has more than 80pc of shares in SESB, should absorb all debts before handing it over to Sabah in seven years from now.
“If TNB has an annual revenue of billions of ringgit, why can’t it absorb the debt? Why is it that SESB, which has less than 20pc share, needs to pay this debt?” he asked.
Shafie said the Government must also review the independent power producers (IPPs) in the State over concerns of inconsistent pricing and supply.
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“How is it that Sabah, which has the most number of IPPs in the country, still faces power supply rationing when there is no other state in the country that does power rationing as much as it does?
“Sabah has over 10 IPPs. We need to review these IPPs,” he said, adding the welfare and benefit of the people should be prioritised and not the benefit of IPPs.
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In supporting the proposed Bill that would give the State full regulatory authority on power supply, the former Chief Minister said it was vital that the future management of the Energy Commission of Sabah is done properly.
He said in future, Sabah can think of exporting its energy but first, it has to make sure that the needs for the State are more than enough.
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