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RM210m power thefts yearly serious matter
Published on: Sunday, February 25, 2024
By: Datuk Seri Panglima Wilfred Madius Tangau
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Illegal connections at Kg Hidayat Tawau.
EARLIER this week, my statement regarding the ongoing battle against power theft by Sabah Electricity Sdn Bhd (SESB) garnered significant attention in the media.

The gravity of the situation cannot be overstated – we are confronted with substantial losses stemming from this illicit activity. Annually, SESB contends with a staggering 17 per cent loss of electricity, with 10 per cent attributed to technical factors or technical losses, and an additional 7 per cent attributed to non-technical factors or non-technical losses resulting from electricity theft.

To put this into perspective, each percentage equates to RM30 million in ringgit value. Consequently, with 7 per cent loss attributable to theft, we are facing an annual loss amounting to RM210 million.

Indeed, many of us agree that power theft has been a long-standing issue ever since electricity was first introduced in our state. It’s not surprising that some Sabahans doubt whether SESB, as the power provider, is really serious about tackling this problem. Even with all the social media posts and obvious signs of illegal connections, the issue persists.

But allow me to provide a clearer insight into why this issue persists and why it’s crucial to bring it to an end permanently. It’s not only about SESB as a company; it directly impacts the livelihoods of all residents in Sabah and the Federal Territory of Labuan.

Perhaps it was not widely publicized previously, nevertheless, the operation to cut illegal power lines has been ongoing consistently. Numerous agencies and authorities have been involved in this endeavour for quite some time.

Despite these efforts, it appears that the strategy of cutting illegal power lines has not been entirely effective, as perpetrators continue to engage in this criminal activity with impunity.

Findings indicate those involved in illegal connections mostly reside in squatter areas. Earlier this month, Sabah police commissioner Datuk Jauteh Dikun said that there are 538 squatter colonies in the state.

Recently, I had the privilege of leading a team from SESB on a site visit to a squatter settlement in Kg. Hidayat, Tawau. Joining me on this important visit were esteemed individuals including Datuk Lo Su Fui, a fellow member of the SESB board and the Tawau Member of Parliament, our Chief Executive Officer (CEO), Ir. Ts. Mohd Yaakob Jaafar, and our Chief Transformation Officer (CTO), Ahmad Nassaruddin Kamaruzaman. 

Additionally, we were accompanied by the Pegawai Pembangunan Masyarakat (PPM) of Balung and Apas, alongside other influential community leaders. 

The primary objective of our visit was to provide first-hand insight and explanation to the community leaders regarding our innovative approach aimed at combatting electricity theft through the implementation of Independent Power Distributor (IPD) systems.

This particular area has been identified as a significant contributor to SESB’s losses, with over 1500 houses, shockingly, only 87 of these households have proper meters installed.

As we entered into the community, the scene was disheartening. To our horror, the majority of houses were adorned with illegal connections, glaringly evident even in broad daylight. Outrageously, instances of electricity theft were observed even in close proximity to the Jawatankuasa Kemajuan dan Keselamatan Kampung (JKKK) operation room. 



Inquiring with the Ketua Kampung, he expressed a sentiment of helplessness in tackling this menace. Urging SESB to take proactive measures, he pledged his full support for the implementation of the IPD system.

We take this criminal activity very seriously and immediately following our visit, a police report was lodged at the Bombalai police station to address this issue.

It’s imperative that we do not turn a blind eye to this issue. The prevalence of illegal power connections significantly contributes to frequent blackouts and unreliable power supply in our communities.

To address this problem, we are planning to implement the Independent Power Distributor (IPD) approach, particularly targeting squatter areas like the one we visited in Kg. Hidayat, Tawau.

You may recall that we piloted this approach successfully last year in a squatter colony in the Sandakan district. Building on the success of that project, we are motivated to replicate the same model here.

The approval from the Energy Commission for the IPD concept in the colony represents an interim solution to combat the widespread issue of illegal power connections.

However, it’s crucial to recognize that the battle against electricity theft encompasses more than just phishing; cable theft is also a significant concern. 

For instance, at Transmission Main Intake (PMU) Apas, underground cables were stolen despite being planted at a depth of 2 feet underground. The value of each stolen cable runs into hundreds of thousands of ringgits. This is the kind of theft we are determined to eradicate.

Moreover, electricity theft in Sabah isn’t confined to squatter areas alone; even hotel and factory operators are involved in such illegal activities. 

Their actions, driven by the desire to evade high monthly bills, are not only unlawful but also pose significant dangers. The repercussions of their actions may not only affect the wrongdoers but also innocent citizens who abide by the law.

This week, authorities conducted raids on two factories suspected of tampering with SESB’s meter installations at their premises in Tuaran. Such actions demonstrate our commitment to combatting electricity theft and ensuring a fair and safe energy distribution system for all.

The raid conducted under Op Letrik was a collaborative effort between the Sabah Criminal Investigation Department (CID) of the Royal Malaysian Police and SESB engineers. As a result of the actions of the two factories that tampered with meter installations, SESB incurred losses amounting to RM85,000. 

This joint operation which has been going on for a very long time is like an endless war on electricity theft. The perception which says that SESB is simply playing victim and not doing anything is a very unfair statement. Many of the operations go unpublished with various levels of success. 

We are now taking the war on electricity theft to the next level and we need the people as a whole to be with us in this. It requires a united effort from everyone. 

So, if you witness any instances of electricity theft, it’s crucial to report it to the police, as they have the authority to arrest these criminals. 

SESB, as an electricity supply entity, often finds itself victimized by theft at our level. In such cases, we take appropriate action by promptly reporting the incidents to the authorities such as the police and the Energy Commission who are empowered with necessary laws to act. 

To draw an analogy, if a thief were to break into a house and steal items, it would be the responsibility of the homeowner to report the incident to the police.

Similarly, SESB reports instances of theft to the authorities and it is then the responsibility of law enforcement agencies to conduct investigations and apprehend the perpetrators. 

Earlier this month, we had the privilege of a courtesy visit to the Chief Police of Sabah, where we discussed our shared determination to put an end to electricity theft and meter tampering. We are fully committed to working closely with law enforcement authorities to address this issue comprehensively and decisively.

SESB’s role in matters related to electricity supply is primarily within the scope of its corporate authority. However, collaborating with relevant authorities and agencies such as the Royal Malaysia Police (PDRM) is essential in combating electricity theft and ensuring the integrity of our power supply system.

- The views expressed here are the views of the writer Datuk Seri Panglima Wilfred Madius Tangau and do not necessarily reflect those of the Daily Express.

- If you have something to share, write to us at: [email protected]



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