KOTA KINABALU: Sabah will continue to request an increase in electricity subsidy from the Federal Government with the rising cost of diesel and fuel globally, says Datuk Armizan Ali.
The Domestic Trade and Cost of Living Federal Minister said that for Sabah, many still depend on diesel to generate electricity as well as to distribute power supply across the state.
Therefore, when global fuel prices increase, it would affect consumers as well as utility companies like Sabah Electricity, he said, adding that costs would also increase by the millions for this matter.
“We know that Sabah is considered one of the leading states that prioritises environmental sustainability in its operations and development plans, among other policymaking,” said Armizan when launching the 33/11kV electricity distribution substation (PPU Benoni 33/11kV) in Papar, Thursday (Sept 24).
“This means that we are a state that emphasises environmentally-friendly practices. We are also the only state that does not use coal to generate power supply,” he pointed out.
He said in terms of forest management and the commitment to preserve at least 50% of land area with forests, Sabah is at 63%, which is far more than the 50% target.
Armizan said that there were also legacy issues faced by Sabah Electricity when it started taking over the regulatory control of the power supply for the state, as well as other factors that should be taken into account.
“These issues have to be considered as well. That is why, as a Member of Parliament, I am asking that the Federal Government seriously consider our plea to have the subsidy increased,” he said in thanking the government for the ongoing subsidy given to Sabah.
He said although the Federal Government continues to partially subsidise Sabah’s power supply after having returned (in phases) the regulatory control of Sabah’s electricity supply and renewable energy since 2024, the current situation warrants additional subsidy.
Earlier, when commending Sabah Electricity for the completion of its RM28.82mil PPU Benoni 33/11kV project, Armizan said this is part of the utility company’s initiative to stabilise and provide better power supply services to the public as well as investors.
This means that with the completion of PPU Benoni, load distribution and management are more stable and can cater to more development, industrial as well as domestic use for Papar.
He said Sabah Electricity had managed to also increase power generation and its reserves over the past few years, from 8%% in 2024 to around 19% currently.
