In a statement on Wednesday (Dec 3), Sabah Electricity Sdn Bhd (SESB) chairman Datuk Seri Wilfred Madius Tangau said that the company does not have the authority to raise or approve electricity tariff rates in the state. He explained that the recently approved Electricity Supply Bill 2024 has transferred the power to decide on electricity tariff matters to the Sabah state Cabinet on the recommendation of the Sabah Energy Commission. Prior to the Bill’s approval, the federal government made decisions about power tariffs in Sabah and the Energy Commission enforced them.
Tangau expressed his concern that many people are still confused about this matter and are directing their grievances at SESB. He emphasized that SESB is only responsible for implementing what has been approved and regulated upon. The company does not have the power to make independent decisions on electricity tariffs.
During the special Sabah State Assembly sitting, three bills related to the state government taking over regulatory powers on energy and electricity supply from the federal government were passed by a majority voice vote. The bills included the Energy Commission of Sabah (Amendment) Bill 2024, Sabah Renewable Energy Bill 2024, and Electricity Supply Bill 2024.
Madius clarified that SESB should not be blamed for the recent electricity tariff adjustment in Sabah, as it was a decision made by the Energy Commission under the Imbalance Cost Pass-Through (ICPT) mechanism. The ICPT mechanism allows fuel costs to be adjusted every six months based on global fuel price fluctuations.
As per the latest implementation of ICPT, domestic users with a monthly electricity consumption of 1,500 kilowatt-hours (kWh) and below will not be required to pay any surcharge. However, domestic users with consumption exceeding 1,500 kWh, as well as non-domestic consumers, will be subjected to a surcharge of 7.21 sen/kWh.
