'Sabah may face blackout without Putrajaya's urgent aid'
He said they only have a short time to go and he was worried about the insufficient funds allocated for Sabah’s power in Budget 2025.
“I don’t think people understand...
Sabah may face a statewide blackout in January unless Putrajaya provides urgent financial support, said Sabah Electricity Sdn Bhd chairperson Wilfred Madius Tangau today.
He said they only have a short time to go and he was worried about the insufficient funds allocated for Sabah’s power in Budget 2025.
“I don’t think people understand how critical this problem is. The federal government cannot simply say they have no money now.
“This is not just about energy security, but by extension, national security as well,” he said as reported by Borneo Post.
Tangau, who is also the Tuaran MP, said the state’s power supply system is on the brink of collapse.
He explained that the electricity tariff in Sabah has remained at a subsidised rate of 34.52 sen per kWh since 2014 despite the rising costs of generating power.
Currently, Sabah Electricity produces only 20 percent of the state’s power, and for years, power has been sourced from independent power producers (IPPs) at an average cost of 43 sen per kWh.
Tangau said the difference in cost has been recovered from federal government subsidies.
However, the cost difference has escalated this year as Sabah Electricity purchased more diesel to generate power due to delays in power generation plants - particularly the 66MW Tenom Pangi hydroelectric dam which was closed after a landslide and mudflow in October 2022.
Budget request denied
Tangau lamented that despite the Sabah government’s appeal for additional funds, Putrajaya has said that it cannot consider the additional budget, leaving Sabah Electricity unable to sustain operations.
This critical situation has been compounded by a letter from the Energy Commission of Sabah, which informed Tangau that the RM866 million electricity subsidy required for 2024 would not be considered due to fiscal constraints.
“I was made to understand that the state government has sent an appeal letter to the federal government. In light of the situation, Sabah Electricity will also be sending a similar appeal letter to the Finance Ministry with immediate effect.
“Sabah Electricity’s cash flow is running into a deficit. Without immediate support, we won’t have the money to pay the IPPs and fuel suppliers, then the fuel supply to the power plant will be blocked and the entire system will collapse.
“There is absolutely no alternative. The chain reaction would impact hospitals, airports, water supplies, and essential services,” he warned.
Tangau stressed the implications of a total blackout go far beyond mere energy security.
“Imagine what would happen to security forces, the medical and healthcare system, airport operations, water supply, telecommunications, transportation systems, and the entire government service network without electricity,” he said.
