PETALING JAYA: Sabah Electricity Sdn Bhd (SESB) is currently operating at a loss as the purchase of power from independent power producers (IPPs) is at a rate of RM0.43 per unit, but sold to consumers at RM0.34.
SESB chairman Wilfred Madius Tangau said this tariff was set by the federal government.
He said SESB can only generate and own 20% of the basic electrical load requirement in Sabah at present.
“The balance is generated by IPPs before being sold to SESB.
“SESB is not able to cover its own operating costs, causing the company to bear the extra cost.
“We need the ability to generate 70% of the basic electrical load in order to resolve disruptions in Sabah,” Bernama reported him as saying after attending the groundbreaking ceremony for the Darau main distribution substation (PPU) near Kota Kinabalu today.
He said SESB needs to be a strong company and able to finance its own costs to ensure the handover of electricity supply regulatory powers from the federal government to Sabah on Jan 3 next year goes smoothly.
Prime Minister Anwar Ibrahim had announced the date when tabling the 2024 budget yesterday.
Tangau said the company still needs help from the government.
Anwar had said the federal government would continue to support Sabah in strengthening the electricity supply industry through subsidies to SESB until the successful implementation of the SESB Transformation Plan, stretching until 2030.
On the Darau PPU, scheduled to be completed in January 2025, Tangau said it is expected to solve the problem of power outages in Inanam and its surrounding areas.
He said work on the PPU began last May to increase the efficiency of power distribution as well as protect the power system.
The project was financed by SESB. - FMT
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