TNB should absorb SESB’s RM2bil debt, says Shafie

 

Warisan president Shafie Apdal said since TNB recorded billions in profit and owned over 80% of SESB’s shares, it should be able to absorb the RM2 billion debt.

PETALING JAYA: Warisan president Shafie Apdal has urged the Sabah government to hold negotiations with Putrajaya on the RM2 billion owed by Sabah Electricity Sdn Bhd (SESB) to Tenaga Nasional Bhd (TNB).

The former Sabah chief minister said since TNB recorded billions in profit and owned over 80% of SESB’s shares, it should be able to absorb the RM2 billion debt.

“Why can’t they absorb SESB’s debt of RM2 billion? If you own more than 50% of the shares, you should be responsible (for the debt).

“Why should Sabah, with less than 20% of shares, pay for the entire debt? I suggest that the state government negotiate with its federal counterpart, especially TNB, to absorb the existing debt before we take back SESB,” Shafie was quoted as saying by The Borneo Post.

Earlier, the Sabah state assembly approved three bills for the state government to take over regulatory powers on energy and electricity supply from the federal government.

The Energy Commission of Sabah (Amendment) Bill 2024, Sabah Renewable Energy Bill 2024 and Electricity Supply Bill 2024 were passed by majority votes.

Shafie also urged the state government to review the independent power producers (IPPs) allowed to operate in Sabah, saying there were “too many” of them, with some using old technology.

Currently, IPPs supply power at a rate of RM0.43 per unit to SESB, which then sells it to consumers at a lower rate of RM0.34 per unit.

Shafie, the Senallang assemblyman, said the IPPs used to be under Putrajaya, but with the three bills, they were now under the state government’s authority.

“Now that the authority is with us, we can review the IPPs, as there are more than 10 in Sabah. Check the IPPs thoroughly and see whether there is a need to extend their contract.” - FMT