KOTA KINABALU: Sabah’s current electricity tariff rate of 34sen per unit is considered outdated by Datuk Seri Madius Tangau. The chairman of Sabah Electricity Sdn Bhd (SESB) clarified that while there are no immediate plans to increase the tariff rate, a review schedule indicates that the current rate should be higher. Tangu added that a deal and tariff price schedule were agreed upon when SESB (then known as Sabah Electricity Board) was privatised in 1998. Back then, the tariff rate was between 24 and 25sen per unit, which has only increased to 34sen after more than 20 years.
Tangau explained that according to the tariff revision schedule, the rate should currently be at 47sen per unit. However, he emphasized that this does not imply an imminent increase in tariff rate. Despite the understanding of the people’s difficulties, SESB has maintained the rate at 34sen. The discussions regarding tariff rates and other matters will take place when SESB gradually takes over in phases starting next year. Ultimately, the decision to update the tariff rate and other related matters rests with the government, not SESB.
Tangau clarified that although SESB is currently privately owned, it operates with government subsidies. As mentioned in the recently announced Budget 2024, the government subsidy helps cover the operational costs of SESB. However, Tangau stressed the importance of Sabah being able to effectively manage SESB independently. As mentioned in the budget, when the government withdraws all subsidies for SESB, Sabah must be prepared to operate SESB self-sufficiently. By then, SESB should be able to generate enough power and maintain sufficient surplus supply to fulfill demands and address unforeseen circumstances.
Tangau emphasized that by 2030, SESB must find ways to operate as a self-sufficient utility company without relying on subsidies. He highlighted the need for SESB to stand independently and manage its operations effectively.
