KOTA KINABALU: Tuaran member of parliament Datuk Seri Wilfred Madius Tangau has urged the federal government to reconsider increasing the electricity subsidy for Sabah.
The Sabah Electricity Sdn Bhd chairman said he received a letter from the Sabah Energy Commission indicating that Putrajaya did not approve an additional RM866 million subsidy for this year, citing fiscal constraints.
"Aren't Sabah's issues national issues as well? Electricity supply is not only about energy security, but also national security," he said while debating the 2025 Supply Bill.
"Consider the effect on our security forces, healthcare, airports, water supply, telecommunications, transport and government services if there is no electricity."
Madius, who is also United Progressive Kinabalu Organisation honorary president, added that without the subsidy, Sabah Electricity would have gone bankrupt long ago.
He said in the 2024 Budget, the federal government pledged to maintain the tariff support subsidy (TSS) for the next six years, but the 2025 Budget did not mention any federal commitment to implementing the Seven-Year Transformation Plan for Sabah Electricity 2030.
"The TSS is critical, as Sabah Electricity's generation cost is 43 sen per unit, but the government-set tariff has remained at 34 sen per unit since 2014. This 10-sen gap has been covered by the federal government, allowing Sabah Electricity to stay operational.
"It's important to remember that the electricity tariff is a government directive, not one set by utility companies like Sabah Electricity."