PUTRAJAYA: Sabah is planning to set up its own energy commission, Chief Minister Datuk Seri Hajiji Noor said.
He said the commission would be the first step to have an electricity supply regulatory authority for the state.
Hajiji also said state government would move to reacquire Sabah Electricity Sdn Bhd (SESB).
Hajiji, who is also Sabah Finance Minister, said the commission would be with zero liabilities once the SESB Transformation Plan was completed within seven years from now.
"Hence, coordination and cooperation from all are needed to ensure the legal process is implemented smoothly," he said in a statement.
Earlier today, he co-chaired a series of high-powered committee meetings with Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan and Minister in the Prime Minister's Department Datuk Seri Mustapa Mohamed at Wisma Sumber Asli here.
During the first meeting of the steering committee on the handing over of the electric supply regulatory power and SESB to the State Government, it was agreed that ministry would bring Sabah's two-phase plan to take over SESB to the Federal Cabinet.
Meanwhile, Hajiji also discussed the proposed programmes and projects to be implemented in Sabah under the Sabah Power Supply Generation Development Plan (2022-2041).
He said the state government proposed that the 100 Megawatt Combined Cycle Power Plant project, which had been tendered out, be built in Kimanis, which has sufficient gas resources readily available.
The state government also supported the New Sabah Hydro application for the proposed development of the 170 Megawatt Hydroelectric Plant "Run of River" Concept at Sungai Maligan and Hulu Sungai Padas, Sipitang, which has been tabled and approved by the Sabah Cabinet.
Hajiji said the proposed 135 Megawatt New East Gas project should be discontinued if the tariff was not competitive and that the Southern Link Distribution project must be implemented as one package and not in phases through direct funding under the 12th Malaysia Plan by 2027.
"The state government also proposed that the Federal Government discontinue the Trans Sabah Gas Pipeline (TSGP) because of no gas supply and instead the contractor that has been paid for the project to do the Southern Link project," he said.
Hajiji also wants the implementation of the upgrading projects of the power distribution grid from Segaliud (Sandakan) to Dam Road (Lahad Datu) and Mengalong (Sipitang) to Lawas, Sarawak, to be expedited.
The state government also requested for the price of gas at the existing independent power plants (IPP) be maintained at the minimum of RM6.40 per Metric Million British Thermal Unit (MMBtu) until the expiry of their concession to avoid a sharp increase in operating cost that will directly impact Sabah's electricity tariff, he said.
The Energy Commission is also urged to expedite the electricity supply project licence approval for the Kibing Glass Factory in the Kota Kinabalu Industrial Park.