KOTA KINABALU: The Energy Commission of Sabah (ECoS) is considering varying tariffs for various areas in the state.
ECoS chief executive officer Datuk Abdul Nasser Abdul Wahid said it was developing a system to apply the new rates.
"There is a formula to consider that option, because from a business perspective, you have to look at the margin, how much your margin will be based on your cost and revenue," he said during an engagement session between ECoS and the media at a hotel here.
"We will work together with the utility company in terms of figuring out the most sustainable manner of supplying electricity.
"One aspect is that the cost of services needs to be calculated based on the actual cost of supplying electricity to that place," said Nasser.
He said supplying electricity to a rural area incurred a higher cost compared with a factory located next to a power plant.
"So the cost is considerably cheaper. You can supply a larger amount because you're only next door to a power plant, and there will be no losses due to distance," he said.
He added that there was a method of calculation and formulation involved.
"We will see how we can design the tariff in accordance with the cost of service. So that's something we're looking at as well," said Nasser.
He said ECoS had to factor in the government's targeted subsidies.
"We are working together with the government to ensure we do not deprive those who require assistance in terms of targeted subsidies.
"For instance, we cannot have a high cost of service in areas where people require subsidies," he added.
Recently, the newly-rebranded Sabah Electricity stated that it was considering varying tariffs for various areas in the state.