The Energy Transition and Public Utilities Ministry announced that the Federal Government has agreed to gradually hand over regulatory power on Sabah’s electricity supply and Sabah Electricity Sdn Bhd (SESB) to the state government as part of efforts to honour the Malaysia Agreement 1963.
Phase one, which involves regulatory control over the state’s power supply, took effect on January 3.
The second phase concerning SESB is expected to be completed by 2030, allowing Sabah to independently plan and implement the development of power supply in the state.
The ministry mentioned that the Federal Government is also prepared to provide guidance and support to the Sabah government if needed.
This handover is intended to empower the Sabah state government to address the power disruption issue and meet the increasing demand for electricity in the state.
During the tabling of Budget 2024 on October 13, 2023, Prime Minister Datuk Seri Anwar Ibrahim announced the agreement between the Federal and Sabah governments on the handover of regulatory control of power supply, effective January 3, 2024.
While Sabah has been given control, the Federal Government is committed to continue subsidizing SESB until the completion of the SESB Transformation Plan in 2030, as stated by Anwar. – Bernama