KUCHING: Sarawak Energy Bhd (SEB) does not intend to review power tariffs even though the recent diesel price rise means a substantial increase in its operational costs.
Group managing director Tan Sri Abdul Aziz Husain said the company would have to fork out an additional RM100mil a year to power its rural diesel generation plants.
“Our profits will be battered, (but) there is no plan to review the power tariffs,” he said after the company’s annual general meeting here yesterday.
The Sarawak government, through the State Financial Secretary, has a 65% stake in SEB, which is involved in the generation, transmission and distribution of electricity in the state.
Abdul Aziz said that to reduce costs, the company would gradually replace its diesel generation plants with alternatives like coal and hydro power, and to connect the smaller towns to the state grid.
As an example, he said the Mukah diesel power plant would be shut down after the first of the 2x135MW coal-fired plants was commissioned in four months’ time.
SEB is also expected to award the tender for the proposed 900MW Murun hydroelectric dam project next month.
It plans to develop several other dam projects and build other coal-fired power stations over the next few years.
Abdul Aziz said that several efforts were under way to connect smaller towns and rural settlements to the state grid.
SEB could also buffer the rising fuel prices by reducing costs and improving the efficiency of its operations, he added.