KUALA LUMPUR — Sabah Electricity Sdn Bhd (Sabah Electricity) chairman Datuk Seri Wilfred Madius Tangau met with Finance Minister II Datuk Seri Amir Hamzah Azizan today to discuss the discontinuation of RM866 million in federal funds meant to subsidise the state utility company’s operations next year.
Tangau on Facebook said he also met Treasury secretary-general Datuk Johan Mahmood Merican to discuss the same matter amid the looming threat of statewide blackout next year if no assistance from Putrajaya is forthcoming.
Tangau said he briefed Amir Hamzah in Parliament on Sabah Electricity’s latest cash flow and expressed hope hope that the Finance Ministry could provide at least RM280 million in electricity subsidy before the year-end, and another RM280 million early next year.
“This is to avoid a drastic electricity supply disruption in Sabah.
“I will do all I can to ensure that Sabah will not face a blackout in January 2025,” said Tangau, who is also Tuaran MP and honorary Upko president.
On November 4, Scoop reported the former Sabah deputy chief minister warning of a statewide blackout beginning in January if urgent financial assistance does not come through from Putrajaya.
With less than two months left, Tangau expressed deep concern over the lack of sufficient allocation for Sabah’s power subsidy in the latest national budget.
He said received a letter from the Energy Commission of Sabah, which informed him that the RM866 million electricity subsidy required for 2024 would not be considered due to fiscal constraints.
The electricity tariff in Sabah has remained at a subsidised rate of 34.52 sen per kWh since 2014, despite the rising costs of generating and purchasing power.
Sabah Electricity currently produces only 20% of the state’s power, with the remaining 80% sourced from Independent Power Producers (IPPs) at an average cost of 43 sen per kWh, a legacy that has been hounding Sabah Electricity for years.
On Saturday, seven districts in eastern Sabah – Sandakan, Kinabatangan, Beluran, Kunak, Semporna, Lahad Datu and Tawau – experienced a blackout which lasted for several hours.
Semporna, Lahad Datu and Tawau had gone without electricity for more than five hours following the blackout, which started at noon.
It was reported that the disruption also led to water cuts as water treatment plants in the affected districts were unable to operate. – November 12, 2024