SESB boost for affordable homes
Published on: Tuesday, May 16, 2017
Kota Kinabalu: A fixed rate has been imposed by Sabah Electricity Sdn Bhd (SESB) from April 1 to assist developers make straightforward calculations on Capital Contribution Charges. Capital Contribution, now known as Consumer Connection Charges (CCC), which are charged to developers to allow power supply into their projects, has been largely based on variable estimations and calculation over the last 16 years. It has been the source of bane for members of the Sabah Housing and Real Estate Developers Association (Shareda) and certain politicians, claiming it indirectly ramped-up the prices of homes sold by developers. ADVERTISEMENT Under the new rate, development and zone charges had been omitted and replaced by a fixed rate calculation mechanism. SESB Senior General Manager (Assets Management) Mohd Yaakob Jaafar said fixed rates have been set on every phase of installation including length of cables needed for projects. The revision of the CCC is now far more transparent, he said. "We have already decided to give a fixd rate but there is a limit for a standard typical development project." ADVERTISEMENT Shareda President Chew Shang Hai welcomed the new calculation, saying any form of reduction in the CCC would be very helpful in development, especially in the affordable home segment. "We would be able to see a big difference in the affordable home range… with the new methodology we would be able to exactly calculate our risk and shorten the calculation time," he said.
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He said the fixed rate would be able to save developers around 30 to 40 per cent more than the previous calculation. Stay up-to-date by following Daily Express’s Telegram channel.
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In a related development, Chew proposed to SESB that a turnkey contractor should be included as an alternative contractor to provide a competitive rate, saying such move would provide more bargaining power to negotiate with Public Works Department on wayleave application. He also called on the utility firm to provide a confirmation letter with regards to delay in electricity supply to project site to allow developers more ground to apply for Extension of Time with the Local Government and Housing Ministry. "In order to increase the effectiveness of this new CCC formula, I would also like to propose further rebates by way of deduction on contributions in the event of increase of electricity tariff," he said. - Jason Santos