KOTA KINABALU: The state government has assured that Sabah Electricity Sdn Bhd (SESB) will not be shut down and that it alone has the rights to review the electricity tariff.
State Industrial Development Minister Datuk Seri Raymond Tan said the state government will find the best solution for the utility company which was reported to be on the verge of insolvency late last year.
“The state government has last week, responded to Tenaga Nasional Berhad (TNB) on increasing the government shares in SESB.
“We have offered to buy 10 per cent stake in Kota Kinabalu Industrial park (KKIP) Sdn Bhd, which is a licenced Independent Power Producer with good record of System Average Interruption Duration Index (SAIDI) of less than 100,” he said, adding that negotiations between state government and TNB are still ongoing.
TNB owns 82.75 per cent of SESB, while state government holds the remaining stake.
Tan, who is also deputy chief minister, said this after witnessing the signing of the offtake agreement between Cement Industries (Sabah) Sdn Bhd and EcoOils Sdn Bhd here.
On electricity tariff review, which was last made and approved by state cabinet in 2014, Tan said the state would decide on the matter based on its constitutional rights.
Tan added that according to the financial statements, SESB has also been making profits which involved million of ringgit since 2014 until August last year.
“The tariff is supposed to be maintained at the same rate or reduced as more than 80 per cent of power generation is from natural gas obtained in the state.
“In 1990, when federal government via Petroliam Nasional Berhad took over oil and gas offshore assets. There is an agreement that the natural gas will be sold to Sabah at a special price."