KOTA KINABALU: Sabah Electricity Sdn Bhd (SE) should focus on sustainable energy investments or reduce the cost of electricity for Sabah's residents, said Datuk Seri Mohd Shafie Apdal.
The Parti Warisan president said SE needed to adopt a new direction that emphasised on transparency, responsible management and a serious commitment to the long-term energy needs of Sabahans.
"Put public welfare at the forefront of priorities and end the cycle of financial mismanagement in SE, which has placed unnecessary burden on our state and its people," he said in a statement.
His statement came following the recent remarks by SE chairman Datuk Wilfred Madius Tangau on the financial liabilities of the utility company.
Shafie said these financial challenges were due to persistent mismanagement and a failure to prioritise the welfare of Sabahans.
"A significant issue is the preferential treatment extended to large industrial entities, such as SBH Kibing Solar New Materials, which benefit from lower electricity tariffs compared with ordinary households.
"For instance, industrial consumers often receive electricity at reduced rates, while residential users face higher per-unit costs.
"This disparity places an undue financial burden on Sabahans, who are already grappling with the rising cost of living," he said.
Shafie added that the current tariff structure not only worsened SE's financial strain but also reflected a misalignment of priorities that favour corporate interests over the needs of the population.
"Relying on high-cost independent power producers (IPPs) and the investment in short-term solutions like the battery energy storage system (BESS) are examples of decisions that serve corporate interests over the needs of Sabahans," he said.
According to Shafie, projects like the BESS, which cost RM645 million, only served as temporary solutions but failed to address the underlying issues within SE's operations.
For too long, he said, Sabah Electricity has channelled resources into maintaining outdated IPP contracts and costly projects that do little to address the state's core power supply issues.
"There are at least 31 IPPs in Sabah with some using outdated technologies, which contribute to frequent power disruptions. These IPP contracts need to be reviewed because of the high cost of maintenance which divert resources away from sustainable, long-term strategies that could enhance energy reliability and affordability for all Sabahans.
"These continue to drain SE's resources, increasing financial strain without delivering meaningful improvements to power reliability or affordability for Sabahans. SE should focus on sustainable energy investments or reducing the cost of electricity for Sabah's residents," he said.
Shafie said Tenaga Nasional Bhd holds over 80 per cent ownership in SE, while the Sabah government owns less than 20 per cent.
"Given this ownership structure, TNB as the majority shareholder, should absorb the financial liabilities of SE, more so as the multinational company has amassed billions of ringgit in profit over the years."
Should Warisan form the next government, he said it proposed to build an eco-friendly dam in Kinabatangan or Segama to address the need for sustainable water management and renewable electricity generation.
"By using low-impact designs and strategic reservoir management, the dam will meet the increasing demand for water and electricity without compromising local ecosystems and wildlife habitats," he said.