KOTA KINABALU: Sabah consumers remain concerned over the power supply in the state despite assurances from the Federal Government that it will continue to provide electricity subsidies to the state until 2030, said a consumer group.
National Consumer Foundation Malaysia Sabah branch chairman David Chan said the announcement by Finance Minister II Datuk Seri Amir Hamzah Azizan regarding the allocation for the next six years was a positive step.
This is particularly a relief for lower and middle-income groups who depend on subsidies to manage their daily expenses amid rising costs of living, Chan said.
"However, despite this welcome assurance, Sabah’s consumers remain worried and confused by conflicting reports from Sabah Electricity (SE) which claimed that no subsidy has been received for their operations," he said in a statement.
"Furthermore, we understand that SE chairman Datuk Seri Madius Tangau received a letter from the Energy Commission of Sabah (Ecos) indicating that the 2025 subsidy allocation is not included in the national budget.
"Given this discrepancy, we urge Ecos, the state sector regulator, to issue an official statement to clarify this matter for the public.
"Transparent and clear communication from regulatory authorities is critical, as consumers have the right to be informed about any changes that may impact their electricity rates and, by extension, their cost of living," Chan added.
Tangau had earlier this month said Sabah may experience a total blackout by early 2025 if the Federal Government ceases its electricity subsidy.
He said this was a critical issue because SE currently operates on a subsidy basis.
Concerns are rising, especially after a letter from Ecos informed him of two key points: first, the subsidy allocation for Sabah's electricity for 2024 will proceed as approved in the 2024 budget, and second, the RM866mil subsidy for 2024 cannot be considered at this time.
The letter, he added, cited the Federal Government's fiscal constraints as the reason for not providing additional allocation for Sabah's electricity needs.
Tangau, who is also Tuaran MP, said without receiving the minimum RM300mil Tariff Support Subsidy (TSS) this year, SE's cash flow will soon turn negative, leaving it unable to purchase power from independent power producers (IPPs).
SE's financial position will hold only until Jan 2025, he stressed, adding that after which a complete blackout was a real possibility.
It was reported that Amir had said during the Dewan Rakyat session on Friday (Nov 15) the allegation that the Federal Government has withdrawn the allocation of electricity subsidy to Sabah was untrue.
The Federal Government, he said, remained committed to providing an electricity subsidy of RM3.54bil over seven years, until 2030, following the transfer of regulatory authority to the Sabah government.
He said as of September 2024, the Federal Government has disbursed RM449.4mil in electricity subsidies (out of the total allocation for 2024 of RM507mil), based on claims that have been reviewed and confirmed by Ecos to SE.
The remaining allocation of around RM57.6mil will be disbursed once the claims are submitted, he said, adding that this balance will be fully disbursed before the end of this year.
As for next year, Amir said, RM700mil has been allocated for the electricity subsidy, which represents an increase of RM193mil from the RM507mil allocation for 2024.
