Sabah Facing Total Blackout Threat by Early 2025
As the chairman of Sabah Electricity (SE), Datuk Seri Madius Tangau has issued a warning that Sabah may experience a total blackout by early 2025 if the Federal Government ceases its electricity subsidy. This critical issue has raised concerns as SE currently operates on a subsidy basis, and without the necessary support, the consequences could be dire.
Subsidy Allocation Challenges
- A letter from the Sabah Energy Commission (ECoS) highlighted that the subsidy allocation for Sabah’s electricity for 2024 will proceed as approved in the 2024 budget.
- However, the letter also mentioned that the RM866 million subsidy for 2024 cannot be considered at this time due to the Federal Government’s fiscal constraints.
This lack of additional allocation for Sabah’s electricity needs could have a significant impact on SE’s operations, especially considering that the company relies on subsidies to function effectively. Without receiving the minimum RM300 million Tariff Support Subsidy (TSS) this year, SE’s cash flow will turn negative, jeopardizing its ability to purchase power from independent power producers (IPPs).
Economic and Security Implications
- The Federal Government’s fiscal constraints have been cited as the reason for the lack of additional allocation for Sabah’s electricity needs.
- Tangau stressed that this issue goes beyond energy security and also poses a threat to national security, as a complete blackout could have devastating consequences.
SE’s financial position is expected to hold only until January 2025, after which a total blackout becomes a real possibility. The electricity tariff in Sabah has been subsidized at 34.52 sen per kWh since 2014, despite rising costs in power generation and procurement.
Appeal for Immediate Support
- In February 2024, SE plans to appeal to the Federal Finance Ministry for immediate support to avoid cash flow deficits.
- Without financial aid, SE will struggle to pay IPPs and fuel suppliers, potentially leading to a collapse of the entire system.
The resulting chain reaction could impact essential services such as hospitals, airports, and water treatment facilities, affecting all societal levels. Tangau has emphasized the need for the Federal Government to reconsider its subsidy allocations and prioritize Sabah’s energy needs to avoid a looming crisis.
Parliamentary Concerns and Future Plans
- Tangau recently raised these concerns in Parliament, highlighting the lack of support for the Transformation Plan for Sabah Electricity 2030 in the 2025 budget.
- He urged the federal government to reevaluate its subsidy allocations and emphasized that electricity tariffs are government-determined, not solely by utility companies like SE.
Conclusion
The potential for a total blackout in Sabah by early 2025 is a pressing issue that requires immediate attention and support from the Federal Government. Without the necessary subsidies and financial aid, SE’s operations are at risk, which could have far-reaching consequences beyond just energy security. It is crucial for stakeholders to work together to address this challenge and ensure the reliability and sustainability of Sabah’s electricity supply.
FAQs
What is causing the threat of a total blackout in Sabah?
The threat of a total blackout in Sabah is primarily due to the Federal Government ceasing its electricity subsidy, leading to financial constraints for Sabah Electricity (SE) and jeopardizing its ability to purchase power from independent power producers (IPPs).
How can the Federal Government support Sabah’s electricity needs?
The Federal Government can support Sabah’s electricity needs by providing the necessary subsidies and financial aid to SE, ensuring the stability and reliability of the state’s electricity supply.