SESB RM133.7 million in red if not for Federal subsidies
Published on: Wednesday, March 21, 2018
Sandakan: Sabah Electricity Sdn Bhd's (SESB) earned a profit of RM44.6 million based on its financial report ending Dec. 31, 2017, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.He said, however, these profits include subsidies from the Federal Government amounting to RM178 million and as such, SESB actually had a cash flow deficit of RM 133.7 million."Among the major factors for SESB's poor financial position are due to the existing tariff rates that cannot accommodate the actual cost of supply that SESB has to bear.
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"Other factors that caused SESB's cash flow towards negative level include the decrease in sale units by three per cent compared to 2017 as well as high salary increase of 23 per cent in 2017."While SESB's financial position is weak, the Federal Government has channeled various subsidies and provisions to ensure that SESB is able to provide consumers with reliable power supply services," he said, in response to Batu Sapi MP Datuk Linda Tsen Thau Lin's question on SESB's financial position in parliament, Tuesday.He said the amount allocated by the Federal Government in the form of subsidies and provisions for developing electricity supply infrastructure was RM23.1 billion from 2001 to 2016.In another development, the district will receive three new vehicles for Duchess of Kent Hospital as well as an additional of nine four-wheel drive ambulance vehicles will also be distributed to health clinics.
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