KOTA KINABALU: Utility company Sabah Electricity Sdn Bhd (SESB) remains committed in supplying power to the state and Labuan with the support and assistance of Federal government.
SESB managing director Abd Razak Salim said the company and Tenaga Nasional Berhad will continue to improve and upgrade the quality of power supply with the support of Energy, Green Technology and Water Ministry (KeTTHA).
Through continuous initiatives since 2012, he said the Federal government spent about RM4.2 billion to ensure electricity in Sabah and Labuan operate at a reasonable level through the provision of transmission, distribution, and generation development.
“The Rural and Regional Development Minister had also implemented electricity supply infrastructure projects in rural areas.
“In the aspect of operational costs, the Federal government has spent about RM1.63 billion in diesel fuel subsidies,” he said in a statement.
“The government has been able to cover its expenses and costs after taking note of the imbalanced operating cost as compared to the selling price of electricity in Sabah and Labuan.
“On average, the approved sales cost at a rate of 34.52 sen/kWh is 42 percent lower than the actual operating costs,” he added.
As additional assistance, Razak also noted the government has helped to fund consumer electricity bill through the RM20 Rebate program since October 2008.
The program, he said, has benefited 90,000 customers in Sabah and Labuan with a value of more or less RM89.3 million.
The government also bears RM112.3 million as subsidy to 301,225 domestic customers who are protected from tariff restructuring for power usage of less than 300kWh.
“Despite the challenges and imbalanced costs of operating over the approved sales tariffs, SESB is still committed to bring improvement and provide the best service.
“Overall, the System Average Interruption Duration Index (SAIDI) for last year is at 287 minutes compared to 311 minutes in 2016. This reflects the outcome of our efforts and initiatives,” said Abd Razak.