KOTA KINABALU: A holistic study is needed to assess the impact of the 15 per cent or 3.75 sen/kWh increase in Sabah’s electricity tariff.
The increase is unjustifiable as it does not commensurate with the quality of power supplied to the industry, according to Federation of Malaysian Manufacturers (FMM) Sabah Working Committee chairman Jay Rahman.
He said in a statement yesterday that FMM Sabah is most concerned about the recent announcement by the Minister of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui on the 15 per cent increase in electricity tariff in Sabah and Labuan effective July 15 this year.
The reasons given for the increase were to prevent Sabah Electricity Sdn Bhd (SESB), a TNB subsidiary, from incurring further losses and to be in line with fuel price increase, he noted.
Jay said that over the years, industries in Sabah have suffered far greater power outages and disruptions coupled with insufficient supply compared to Peninsular Malaysia.
He said: “Industries in Sabah have yet to receive compensation for some of these occurrences. There have yet to be significant improvements in the quality of supply of power, but the industry is already being taxed with higher electricity tariff.
“SESB is obligated to provide its customers with quality and uninterrupted electricity supply.
FMM Sabah strongly believes that the State Government should set up a high-powered Energy Committee comprising representatives from the relevant government agencies and the industry, including the FMM.”
Jay said the committee should address the longstanding problems faced by the industry with poor quality and inadequate power supply in the State.
There should also be a thorough cost impact study on industrial consumers arising from the impact of the tariff increase in addition to losses suffered from the poor quality and inadequate supply of power, he added.
As the most affected group, Jay pointed out that industrial consumers should be consulted for their views and to receive the necessary clarifications so that there is mutual understanding of energy related issues as well as greater transparency in the State’s energy and supply policies.