Kuala Lumpur: The Federal government expects the process of handing over the ownership of Sabah Electricity Sdn Bhd (SESB) to the state government to take at least five years.
Energy and Natural Resources Deputy Minister Asli Ali Biju said the government was committed to handover the utility company but this would only be possible after all policy, economic, technical and operational issues as well as the legal framework were finalised.
“The negotiation process will begin after getting the latest direction on the handover from the state government administration with the establishment of a Steering and Technical Committee.
“This handover process is expected to take a long time as it involves aspects of legal, financial and technical aspects to the Federal government as well as the Sabah government,” he said in response to a question from Yeo Bee Yin (PH-Bakri) at the Dewan Rakyat sitting today.
Ali said in terms of legislation, several actions needed to be implemented before granting the legislative powers on electricity supply to the Sabah state government, implemented through the gazetting of the Order under Article 95C of the Federal Constitution.
It includes amendments to the Renewable Energy Act 2011 and the Sustainable Energy Development Authority Act 2011 by the Federal government, drafting state laws on Sabah electricity supply and the suspension of the application of Federal acts related to electricity supply in Sabah.
In terms of finance, he said several things need to be given attention, especially on SESB’s sustainability in providing a reliable electricity supply to the people of Sabah as the state government needs to take over the responsibility.
“For example, currently the Federal government provides an annual subsidy allocation to SESB of around RM700 million a year. This responsibility must be taken over by the state government when the electric power supply is handed over later,” he said.
On the technical aspects, he said the state government should be prepared through the establishment of a new regulatory body to take over the regulatory functions of the electricity supply industry in Sabah from the Energy Commission and the Sustainable Energy Development Authority (Seda) before the Order is gazetted.
Ali said the government through the Energy Commission will continue the practice of publishing the Generation Development Plan agreed at the meeting of the Planning and Implementation Committee for Electricity Supply and Tariff for Peninsular Malaysia and Sabah to the public after the plan is approved by the Cabinet.
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