KUALA PENYU: Sabah is exploring various options, including possible use of coal, to reduce electricity generation costs and maintain affordable tariffs for consumers, said Sabah Works and Utilities Minister Datuk Seri Dr Joachim Gunsalam.
He said coal remains one of the cheaper fuel sources for power generation although its use continues to raise environmental concerns globally, he said after officiating the Kuala Penyu Kaamatan Festival.
Joachim said Sabah is currently in a relatively positive position in terms of carbon balance, adding that the state could still consider coal as an option if affordable electricity remains a priority.
“However, if we want the cleanest source of energy, then we must be prepared to bear slightly higher costs,” he said.
Also present were Kuala Penyu Assemblyman and Assistant Works and Utilities Minister Datuk Limus Jury, Assistant Agriculture, Fisheries and Food Industry Minister Datuk Ruslan Muharam and Beaufort MP Datuk Aminah Aching.
Joachim was commenting on public concerns over electricity bill increases that recently went viral on social media.
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Sabah Electricity Sdn Bhd (SESB) said many of the complaints were not caused by the new tariff adjustment, but linked to unpaid arrears, higher electricity consumption and meter-related issues.
SESB Chief Executive Officer Datuk Ir Ts Mohd Yaakob Jaafar had said investigations into several viral cases found that many complaints involved overdue bills, increased household electricity usage during festive seasons and hot weather, as well as illegal meter tampering.
Joachim said the current average cost of generating electricity is about 40 sen per kilowatt-hour (kWh), while electricity is sold to consumers at around 37 sen per kWh, indicating that subsidies are still being borne by the government.
“At the moment, the government is still subsidising electricity. There has been a slight tariff increase, but it is still insufficient to fully cover generation costs,” he said.
The Deputy Chief Minister I added that the state government and utility providers are studying various methods to improve energy efficiency and reduce costs to ensure long-term tariff stability.
He stressed that the public must understand the direct relationship between electricity generation costs and tariff rates, as cleaner energy sources generally involve higher investment and operational costs.
"The state government will continue to seek the best balance between ensuring stable electricity supply, affordable tariffs for the people and environmental preservation.
“This is important to ensure Sabah has a sustainable and competitive electricity supply system capable of supporting long-term economic growth,” he said.