The Minister of Energy Transition and Water Transformation (Petra), Datuk Seri Fadillah Yusof said Federal Government has given preliminary approval to a Special Purpose Vehicle (SPV) formed for the development of a power station construction project in the Federal Territory of Labuan.
“This approval was granted during a Cabinet Meeting on January 24, 2024,” he said today (Mar 25) at Dewan Negara in response to Tan Sri Datuk Seri Panglima Anifah, Aman @ Haniff Amman inquiry.
The SPV comprises the following companies (i) PETRONAS, through its subsidiary PETRONAS Gas Berhad (PGB) (ii) Sabah Electricity Sdn. Bhd. (SESB), through its subsidiary Elopura Power Sdn. Bhd. (Elopura), and (iii) Sabah Energy Corporation Sdn. Bhd. (SEC).
Additionally, Fadillah said the Ministry has also issued a Letter of Intent to the Special Purpose Vehicle (SPV) on February 6, 2024, to enable negotiations on technical and commercial terms between the SPV and the Energy Commission (EC) to be conducted.
Subsequently, the EC has taken appropriate action to engage in negotiations on these terms with the SPV to ensure that the Government obtains the best value for the development of this project.
“The Federal Government will remain committed to ensuring that electricity supply in the Federal Territory of Labuan continues to be assured and stable, and to expediting the project’s operation by the year 2028.” Fadillah added.
“The Ministry acknowledges the proposal from the esteemed member and understands that there will be an increase in electricity usage due to the current hot weather affecting the country.
However, it is essential to note that electricity bills are calculated based on the monthly usage of consumers rather than the value of their homes.” Fadillah said in response to Datuk Mohd Hisamudin Yahaya’s inquiry.
Fadillah said that the cost of fuel globally remains high, leading to increased electricity generation costs, which should be passed on to all electricity consumers in Peninsular Malaysia under the Imbalance Cost Pass-Through (ICPT) mechanism.
“Nevertheless, the Government has allocated an electricity subsidy totaling RM1.064 billion for the period from January to June 2024 to all domestic users, approximately 8.1 million users, consuming 1500 kWh and below per month, to exempt them from any surcharge during this period.
Additionally, consumers paying electricity bills exceeding RM900 per month or using more than 1,500 kWh per month are encouraged to take advantage of the Sustainability Achieved Via Energy Efficiency (SAVE) 4.0 Program implemented by the Ministry,” he added.
This program, managed by SEDA Malaysia as the implementing agency, will provide e-rebates of up to RM400 to users for purchasing energy-efficient air conditioners and refrigerators with 4 or 5-star energy labels issued by the Energy Commission.
“Consumers can obtain e-rebates through two methods: physical purchases at registered electrical shops/supermarkets or online purchases through recognised e-commerce platforms.
Consumers in this category are encouraged to take energy-saving measures.
Moreover, the Government, through this Ministry, continues to implement the RM40 Electricity Bill Rebate Program for Heads of Household (KIR) in the hardcore poor category registered and verified in the e-Kasih System.
This year, the Ministry has received an allocation of RM55 million from the Ministry of Finance to implement this program for the benefit of over 160,000 hardcore poor KIR nationwide.” Fadillah said.
