Loss of state’s revenue from reduction of electricity charges offset by revenue from Bakun dam water royalty
Adenan speaking to the press at the dialogue. — Photo by Chimon Upon
KUCHING: Water royalty from the Bakun hydroelectric dam has contributed over RM100 million to the state’s coffers, offsetting the loss in revenue from reduced electricity tariff.
Chief Minister Datuk Patinggi Tan Sri Adenan Satem, said the state government was able to lower the electricity tariffs because it was making money out of the mass consumption of water by Sarawak Energy Bhd (SEB).
“Water is our right, therefore we charge royalty on it. Now that the Bakun hydropower dam is functioning, the state is generating revenue from the project,” he said during a dialogue with the local media at the old State Legislative Assembly (DUN) building here Wednesday.
Beginning January last year, domestic consumers in the state enjoyed lower electricity tariff ranging from two to 40 per cent. Adenan had also announced that commercial and industrial tariffs would be reduced by eight to 50 per cent and four to 40 per cent respectively from June.
On a related note, he pointed out that it was his decision not to proceed with the construction of the Baram dam, despite the opposition claiming credit for that and even went as far as saying that the cancellation of the project was ‘an admittance of defeat by the government’.
“When I re-examined the initiative, we found that there was no need for another dam. We can build mini hydro dams for local usage; not one of such capacity (as the planned Baram dam) because we are not supplying power to Peninsular Malaysia anymore. We will proceed with smaller dams for the local community,” he said.
Adenan also took the opportunity to thank SAVE Rivers Network chairman Peter Kallang for giving the credit to the government on the project’s cancellation.
In June last year, Adenan announced the decision to pull the plug on the 1,000 megawatt (MW) Baram dam project to allow more time for it to go through studies by international dam and environment experts.
The Baram dam project was the fourth in the state government’s ambitious plan to build 12 dams under its Sarawak Corridor of Renewable Energy (SCORE) master plan. Local communities were strongly against it and at one point, protestors had set up blockades to stop surveyors and road builders from accessing the site. This had impeded construction of access roads and preparatory works for the dam.