DAP Sabah has urged the Minister of the Energy, Green Technology and Water Ministry Datuk Seri Dr Maximus Ongkili to reveal the truth behind the issue of “SESB is on the verge of bankruptcy”. DAP has warned that any plot to increase the power tariff by self proclaimed financial crisis of the Sabah power supply provider would be rejected at all cost.
It’s secretary Chan Foong Hin said, Maximus should offer solutions to resolve the SESB`s financial crisis. However, he chose to disclose the problem via a statement, which seems much more like seeking for tariff revise justification, rather than to resolve the issue comprehensively.
The Sri Tanjong Assemblyman pointed out that, Maximus should reveal the truth of high cost of energy generation at 56.50 cent/kWh, compared with the current average tariff at 34.52 cent/kWh.
“Is it just due to the expensive fuel sources such as diesel, medium fossil oil, and gas? Or is it due to unreasonable high power purchasing price from Independent Power Producer? How about the efficiency of power generation? Anything can be improved in SESB`s management? ”
He said, Maximus should identify the root cause of the financial crisis, reveal the truth behind the continuous losses by SESB, before threatening the public that, if no tariff revision the power provider would go for bankruptcy.
Maximus’s self revelation that SESB is on the verge of insolvency, have further proven that the federalization and thus privatization experience for the state power provider in the past has come to a state of failure.
Sabah Electricity Board which was founded since the formation of Malaysia was federalized in 1984 and privatized in 1998, with Tenaga Nasional Bhd (TNB) owning 82.75% of it, while the remaining 17.25% by the Sabah state government.
“What have we achieved throughout the years of federalization and privatization of SESB? Nothing but on the verge of insolvency! It’s better to let the Sabah state government take back our power provider. I believe that Sabahan’s can come forward with a new plan to revamp the whole management of SESB.”
DAP Sabah would reject any plot to increase the power tariff by self proclaimed financial crisis of the Sabah power supply provider at all cost, added Chan.
