Kota Kinabalu: The State Legislative Assembly on Tuesday approved two important Bills pertaining to State rights as per the Malaysia Agreement 1963 – Sabah Energy Commission Enactment 2023 and the Gas Supply Bill 2023.
The Bills pertaining to the transfer of gas supply regulatory power to the State Government and takeover of electricity supply from the Federal Government to the State Government, respectively, managed to go through despite empty opposition seats (see separate story).
Speaker Datuk Seri Kadzim M. Yahya who passed the Bills at the third reading told reporters later that support for the Bill came only from those present in the Assembly comprising 44 members who are supportive of Chief Minister Datuk Seri Hajiji Noor and this was recorded in the Hansard.
Kadzim said only Datuk Salleh Said Keruak sought permission for being unable to attend. “I did not receive any application for leave from the rest.”
Those present comprised GRS, PBS, Star, five Umno Sabah members, Pakatan Harapan, PAS and SAPP.
Those who were absent were 12 Sabah Umno members, 19 Parti Warisan members, three from Parti KDM and Parti Bangsa Malaysia.
The first seeks to establish the Energy Commission of Sabah (ECoS) which grants it authority to oversee Sabah’s energy supply operations and enforce the State’s energy laws.
Chief Minister Datuk Seri Hajiji Noor when tabling it said the Bill enables ECoS to perform regulatory functions for gas supply in Sabah so that all activities in the sector can be controlled and executed efficiently.
He said it was the first phase of the plan to take over the power sector in Sabah and that “Malaysia would be loved more by the people of this State.”
“This is a good beginning for Sabah to have authority over our rights as mentioned in the Malaysia Agreement 1963,” Hajiji said.
He said the second phase would be to take over the electricity and renewable energy supply around April.
As for the Gas Supply Bill 2023, Hajiji said it allows the State to regulate gas supply with the same objective as the first, with the law administered and enforced by ECoS.
“At the meeting last year in August, the State Government requested that Sabah be granted the jurisdiction to regulate gas, and today it has become a reality the Federal Government has given us the authority.
“In terms of the powers to regulate electricity and renewable energy supplies, the Federal Government has agreed, in principle, to hand over control to Sabah this year, God willing.
“We expect to convene again this year to establish a new electricity and energy commission so that we can take over the supply of power renewable energy for Sabah,” he said.
“Our commitment to fight for our rights will not end here. I am confident that Malaysia will be loved more by the people of this State, and that Malaysia will become a country that everyone, regardless of race or religion, can be proud of.
“This Bill is a very good start for us to reclaim our powers and rights that the Federal Government has held all along,” he said.
On Nov 2, last year, the Sabah State Energy Unit gained preliminary approval from the State Council of Ministers for the action plan and schedule for the acquisition of Sabah state energy sector regulatory authority.
The proposed regulatory authority acquisition was to be carried out in two stages.
The first phase, beginning in January 2023, will involve the acquisition of gas supply regulatory powers now supervised by the Federal Government under the
Energy Commission Act 2001 (connected to gas functions) and the Gas Supply Act 1997.
In the second phase, the State Government plans to acquire the power to regulate the supply of electricity and renewable energy in April 2023, which is currently supervised by the Federal Government under the Energy Commission Act 2001 (relating to electricity functions), the Electricity Supply Act 1990, the Authority Act Sustainable Energy Development 2011, and the Renewable Energy Act 2011.
The order under Article 95C of the Federal Constitution which is the suspension of the Gas Supply Act 1997 and the Energy Commission Act 2001 (relating to the function of gas) was obtained from the Federal Government through the Cabinet Meeting on Dec 21, 2022.
The order was approved by the Yang di Pertuan Agong on Dec 27, 2022 and effective on Jan 10, 2023.
Parallel to the Order’s execution, the Sabah Energy Commission Bill 2023 should be tabled in the State Legislative Assembly on Jan 10, 2023 to authorise the Sabah State Government to take over the regulatory authorities of the energy sector, particularly gas delivery.
The Sabah Energy Commission Bill 2023 contains 6 Sections and 43 Clauses.
The First Part has two clauses that specify, in relation to the short title, the date of entry into effect, and the provision that this Bill allows the Commission to control and ensure the orderly distribution of gas supply.
The Second Part contains 11 Clauses that explain the organizational structure of the Commission’s establishment.
The Third Part contains 5 Clauses that state the functions and duties of the Commission among which is to regulate, promote efficiency, economy and safety in all matters related to the supply of gas through pipelines and the use of gas as provided under the gas supply law.
The Fourth Part contains 7 Clauses that provide for the appointment of officers and benefits provided by the Commission.
The Fifth Part contains 11 Clauses that provide information regarding the financial procedures of the Commission. A Sabah Energy Fund will be created for the purposes of the energy supply law which will be administered and controlled by the Commission.
The Sixth Section contains 7 Clauses which provide for general matters including prosecution, public service, the Protection of Public Authorities Act 1948, the power to take up work, the duty of confidentiality and representation in civil proceedings.
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