SANDAKAN – Warisan’s Sri Tanjong assemblyman Justin Wong has maintained his argument that Sabahans will be greatly impacted by the increased electricity tariff in the state.
This is despite the explanation given by Sabah Chief Minister Datuk Seri Hajiji Noor at the state assembly yesterday.
Based on Hajiji’s explanation, 99% of commercial users in Sabah and Labuan are not going to be affected by the increase. However, Wong Said large commercial and industrial premises will still be impacted by the hike, which will also eventually affect consumers.
“The increase in the electricity tariff affecting industrial and commercial users will create a domino effect as this will affect the whole supply chain.
“When huge industrial and commercial premises such as manufacturers and factories are charged 300% more for electricity, what do you think will happen?
“It is simple logic. They will have to pass on the increased operational cost to retailers, such as wholesalers and supermarkets, and ultimately to the consumers, who are Sabahans. The prices of goods and services in Sabah will skyrocket.
“It is a terrible time (to impose a higher electricity tariff), considering the unstable economy and the high unemployment rate in the state,” he told Scoop.
Wong also said that concessions managing water treatment plants throughout Sabah, such as the Timatch Group, will also be impacted.
“Is this going to increase the water bill too?” he asked.
He stressed that the increase in electricity tariff – from 2.11 sen per kWh to 7.21 sen per kWh, which is over a 300% increase effective January 1 this year – is too drastic for Sabahans to handle.
“This would also make the electricity tariff for commercial properties in Sabah even higher than the tariff imposed in West Malaysia, which is 3.7 sen per kWh for medium voltage users and 3.5 sen per kWh for high voltage users.
Wong said that if the government’s decision to raise tariffs is to offset the costs associated with the increase of independent power producers in Sabah, then the state government should work towards exploring alternative power sources.
For example, expediting the Ulu Padas Hydroelectric Dam project, he added.
He said that the increase in electricity tariffs affecting industrial players could pose a risk of investors and companies withdrawing from industrial parks, including the Kota Kinabalu Industrial Park and the Sipitang Oil & Gas Industrial Park, among others.
Wong urged the state government to control the increase in electricity tariffs now that the Energy Commission of Sabah (ECoS) has officially taken over as the regulatory authority for the state’s electricity supply from the Energy Commission.
“I believe that this means the Sabah government and ECoS have the authority to decide the tariff now. I want to see what the Sabah government is going to do next,” he said.
Apart from that, he also urged the state government to offer some special rate or discounted electricity tariff, like the one offered exclusively to SK Nexilis, Sabah’s largest current foreign investor.
“Or just provide local industrial companies with a subsidy to cover the drastic increase in power tariffs,” he added.
Asked about Hajiji hitting back at him, Wong said the chief minister only “talks big”.
“I think that he (Hajiji) did not answer my questions directly because he didn’t know the answer.
“He also asked me not to talk about the matter in the Dewan. If not there, where else I ask questions? At a coffee shop?” he added. – January 4, 2024