KOTA KINABALU: Sabah is considering taking over Sabah Electricity Sdn Bhd (SESB) within the next seven years, according to State Chief Minister Datuk Seri Hajiji Noor.
He made this disclosure during a special assembly sitting after tabling the Amendment for the Energy Commission of Sabah Enactment 2023.
"It is in the pipeline that we will take over within seven years from now, as the (federal) government will no longer provide the subsidy.
"The Sabah government currently holds a 17 per cent ownership stake in SESB, while Tenaga Nasional Berhad holds the remaining 83 percent. We also need to consider the liabilities and share values of the utility company."
During the tabling of the 2024 Malaysia Madani Budget last year, Finance minister Datuk Seri Anwar Ibrahim said that subsidy assistance would only be provided to SESB up to 2030 since the regulatory authority has been transferred to the state government.
Between 2012 and 2019, the federal government channelled RM3.7 billion to support fuel, solar, and tariff support subsidies in Sabah.
Hajiji added that the state government would also study the matter on taking over independent power producers (IPPs) once their contracts finish, as it would involve millions and billions of ringgit in financial implications.
Currently, 80 per cent of Sabah's power supply is generated by IPPs.
Earlier in the debate, Datuk Azhar Matussin (Warisan-Darau) suggested there should be an ideal tariff rate for both the public and private sector.
Apart from that, the Energy Commission of Sabah (ECoS) must have the capability and expertise to handle additional responsibilities related to electricity supply.
The government must ensure that its personnel are experienced in managing electricity and do not have problematic records, or else past mistakes may be repeated.
He also urged addressing electricity theft issues.
The debate also involved assemblymen from Sindumin, Senallang, Tanjung Aru, Liawan, Bongawan, and appointed assemblyman Datuk Seri Yong Teck Lee.
The sitting passed the bill.