Nation

SESB doesn't have the authority to revise electricity tariff

KOTA KINABALU: People, including Sabah politicians, should not assume that Sabah Electricity Sdn Bhd (SESB) has the authority to revise electricity tariff, said its chairman Datuk Seri Wilfred Madius Tangau.

He was commenting on today's state special assembly sitting where many of the elected representatives did not understand the matter.

"I see that many are still confused about this, leading to various parties expressing dissatisfaction with SESB.

"For your information, SESB functions as a utility company providing electricity supply to consumers.

"Tariff-related matters are determined by the Federal Cabinet based on the Energy Commission's (ST) recommendations, and SESB only implements what has been approved under the supervision and enforcement of ST," he said in a statement.

The Tuaran member of parliament also added that, ST in a statement on December 26 last year, announced the adjustment of electricity tariffs for the period from January 1 to June 30, 2024, in Sabah, implemented under the Imbalance Cost Pass-Through (ICPT) mechanism.

ICPT refers to a mechanism approved by the Government and supervised by the ST under the Incentive-Based Regulation (IBR), allowing fuel costs to be adjusted every six months based on fluctuations in global fuel prices.

Through the implementation of ICPT, domestic consumers (DM tariff) with electricity usage of 1,500 kilowatt-hours (kWh) and below will not incur any surcharge.

DM tariff with electricity usage exceeding 1,500 kWh will be charged a surcharge at a rate of 7.21 cents/kWh.

Meanwhile, non-domestic consumers will be charged a surcharge at a rate of 7.21 cents/kWh.

"However, SESB is being blamed, even though the decision to adjust the ICPT tariff is beyond SESB's jurisdiction.

"After the Electricity Supply Sabah Enactment Bill is approved by the State Assembly today (Wednesday), the authority to determine electricity tariff matters will be approved by the Sabah State Government based on the recommendations of the Sabah Energy Commission (ECoS)."

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