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PUTRAJAYA – Sabah’s plan to take over utility firm Sabah Electricity Sdn Bhd (SESB) is now in motion, with the state also planning to set up its own energy commission.
This comes following a series of high-powered meetings held by a steering committee consisting of representatives from the Energy and Natural Resources Ministry, the Prime Minister’s Department and the Sabah government.
The meetings were held at Wisma Sumber Asli here and in Kuala Lumpur for the purpose of handing over electricity supply regulatory powers and SESB to the state. Electricity supply is currently under federal purview.
Co-chairing the steering committee are Sabah Chief Minister Datuk Seri Hajiji Noor, Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan and Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
In the first meeting, the Energy and Natural Resources Ministry had agreed to bring up the state’s idea to take over SESB in two stages to the federal cabinet.
According to Hajiji, the Sabah Energy Commission would be set up first to pave the way for a regulatory framework to devolve authority over the matter from the federal government to the state.
Following this, SESB will be returned to Sabah with zero liabilities under a transformation plan called the SESB Transformation Plan, which will be completed within five to seven years from now, he said.
“Coordination and cooperation from all parties are needed to ensure the legal process is implemented smoothly,” he said in a statement today.
Accompanying the chief minister at the meetings were state secretary Datuk Seri Safar Untong, Unit Tenaga Sabah CEO Datuk Abdul Nasser Abdul Wahid, state Attorney-General Datuk Nor Asiah Mohd Yusof, Sabah Public Service Department Director-General Datuk Rosmadi Datu Sulai and Sabah Finance Ministry permanent secretary Mohd Sofian Alfian Nair.
During a meeting with Takiyuddin, Hajiji had also raised the issue of implementing the proposed programmes and projects under the Sabah Power Supply Generation Development Plan (2022-2041).
These include a 100-MW combined cycle power plant project in Kimanis, which has been tendered out as Sabah has sufficient gas resources available, he said.
Hand over, expedite, upgrade, Hajiji tells federal government
At a later meeting with Mustapa at the Grand Millennium hotel in Kuala Lumpur, Hajiji discussed the handing over of management and control of Sabah’s gas resources.
With Sabah having control over its gas resources, the state would be able to realise various initiatives that have been planned and implemented in the state, he said.
“It will allow us to have direct involvement in the oil and gas industry activities. This will benefit the people of Sabah,” he said.
He added that the state would be able to ensure its gas industry will continue to be developed without compromising on safety and service efficiency to consumers, as well as without disruptions to operations during the transition period.
Among the other issues brought up to the steering committee was that of the 170-MW hydroelectric-plant “run-of-river” concept at Sg Maligan and the Hulu Padas-Sipitang areas, which had been approved by the Sabah cabinet under the new Sabah Hydro initiative.
Hajiji, who also occupies the portfolio of state finance minister, also proposed the 135-MW New East Gas project to be discontinued if the tariff is not competitive.
He requested for the Southern Link Distribution project to be done in one package,and not in phases, via direct funding under the 12th Malaysia Plan by 2027.
“The state government also proposed that the federal government discontinue the Trans-Sabah Gas Pipeline because of no gas supply, and instead the contractor that has been paid for the project (has been asked) to do the Southern Link project,” he said.
Hajiji also wants the upgrading works for the power distribution grids from Segaliud (Sandakan) to Dam Road (Lahad Datu), and Mengalong (Sipitang) to Lawas in Sarawak to be expedited.
At the same time, the state requested for the price of gas at the existing independent power plants be maintained at the minimum of RM6.40 per metric million thermal unit until the expiration of the companies’ concessions.
Hajiji said this is to avoid a sharp increase in operating costs that would directly impact Sabah’s electricity tariff.
He also urged the Energy Commission to speed up the approval of power supply to the Kibing glass factory in Kota Kinabalu Industrial Park. – The Vibes, August 25, 2022