KOTA KINABALU: The basic electricity tariff in Sabah must be reviewed to reflect the actual costs, says the Energy Transition and Water Transformation (Petra) Ministry.
The ministry said that this would help to reduce Sabah Electricity Sdn Bhd's dependence on subsidies from the federal government.
During the tabling of the 2024 Budget last year, Finance Minister Datuk Seri Anwar Ibrahim said that subsidy assistance would only be provided to SESB up to 2030 since the regulatory authority had been transferred to the state government.
SESB chairman Datuk Seri Wilfred Madius Tangau, who is also Tuaran member of parliament, had asked in the Dewan Rakyat sitting yesterday on efforts by Petra on ensuring the state utility company no longer relied on subsidies from the federal government.
In a written statement, Petra said the indicative ceiling number of federal subsidies to Sabah Electricity Sdn Bhd (SESB) for 2024 to 2030 was RM3.54 billion.
The amount includes fuel subsidies, large-scale solar subsidies, tariff support subsidies, and Renewable Energy (FiT) subsidies.
The analysis was conducted by the Energy Commission (ST) should the Sabah Government implement the electricity tariff adjustment for that period.
"However, following the transfer of regulatory power for electricity supply to the Sabah Government on Jan 3, 2024, the setting of electricity tariffs, as well as all planning for the electricity generation development plan, procurement, monitoring and supervision of projects, and resolving issues related to electricity supply in Sabah, fall under the full jurisdiction of the state government."
The current average tariff rate per unit sold to consumers is 34.5 sen, while the utility company buys electricity from independent power producers at 43 sen.
The tariff was only revised twice since 1968, which changed the tariff rate per unit from 24 to 34 sen now.