Mohd Yaakob presenting a memento to Madius during the SESB Vendor Day launching ceremony.
KOTA KINABALU (Oct 16): Sabah Electricity Sdn Bhd (SESB) will expand the prepaid meter project to selected areas of the state capital, particularly squatter settlements in Sepanggar.
SESB chairman Datuk Seri Panglima Wilfred Madius Tangau said that following the success of the project in the squatter settlement of Kampung Forest, Sandakan in October 2023, it will be expanded to the state capital after the second phase of the project in Kampung Hidayat, Tawau.
“Since its implementation, the Independent Power Distributor (IPD) project has registered 974 users in Kampung Forest, Sandakan, with the latest bill amounting to RM36,000 and has achieved cost savings of up to RM327,000.
“This amount proves the effectiveness of the IPD project, as incidents of electricity supply disruptions, vandalism, and low voltage quality in the area have been minimised. It also provides a solution to the issue of illegal connections, which have caused significant financial losses for SESB due to uncollected electricity usage revenues,” he said during a press conference at the SESB Vendor Day 2024 programme.
Madius further explained that the IPD project will be implemented in identified areas, including Kampung Numbak, Delima, Suang Parai, and Lokub in Sepanggar.
“We are currently determining the costs and total requirements, and once the data is obtained, the project will be implemented, at least by early next year.
“There are at least 300 squatter settlements in Sabah, and SESB plans to implement six IPD projects annually in an effort to reduce the occurrences of electricity supply disruptions and theft in these areas,” he said.
Madius emphasised that SESB remains committed to applying Environmental, Social and Governance (ESG) principles across all operations, as this initiative is a crucial part of supporting the government’s efforts to empower local industries and ensure a sustainable and resilient energy supply.
“At the same time, we cannot ignore the challenges faced by the energy industry, particularly the problem of illegal connections, which pose a significant threat. This activity not only affects SESB’s finances but, more importantly, presents safety risks to the public.
“Recently, during my visit to Lahad Datu in early September, I personally reported the issue of electricity theft in Kampung Puyut, involving over 1,000 homes, which resulted in a loss of more than RM1 million to SESB.
“Overall, annual losses in Sabah due to electricity theft in squatter settlements are estimated to reach RM60 million, and the IPD project, which operates on a prepaid meter system, can help address this problem,” he said.
He added that continued cooperation from all parties, especially SESB’s vendors, is highly appreciated, particularly in contributing innovative technology and maintaining high levels of compliance from all stakeholders over the years.
However, he also stressed that public support in raising awareness about the responsibility for proper and safe energy usage is necessary so that everyone can help create a more sustainable and competitive energy ecosystem in Sabah.
The SESB IPD project, which has received approval from the state government, is being implemented with SESB appointing concession companies to supply electricity at an unsubsidised rate of around 47 sen to users.
SESB Chief Executive Officer Mohd Yaakob Jaafar was also present at the Vendor Day.
Previously, Mohd Yaakob informed that SESB had identified several squatter areas suitable for this special IPD project in Kampung Hidayat, Tawau, and the initial survey process to gather information and scope for the project has already been conducted.
The proposal for the project will then be submitted to the Sabah Energy Commission (ECoS) for the purpose of obtaining the IPD license and setting the tariff rate.
Meanwhile, the SESB’s annual Vendor Day was held with a new concept and approach, aligning with current trends and developments, while continuing its main objective of strengthening bilateral relationships between SESB and its stakeholders.
Madius said that the event is also one of the best platforms for all parties to share ideas and build stronger ties with stakeholders.
“Over the course of this two-day event, participants will have the opportunity to engage in 12 briefing sessions held in collaboration with various entities such as Tenaga Nasional Berhad (TNB), the National Institute of Occupational Safety and Health (NIOSH), the Construction Industry Development Board Malaysia (CIDB), the Energy Commission of Sabah (ECoS), and the Malaysian Anti-Corruption Commission (MACC).
“SESB remains committed to incorporating Environmental, Social and Governance (ESG) principles into all aspects of its operations. This initiative also supports the government’s efforts to empower local industries and ensure a sustainable and resilient energy supply.
“I believe that strong cooperation between SESB and its vendors is key to the success of this effort,” he said in his speech at the launch of the SESB Vendor Day 2024, held at the Sabah International Convention Centre (SICC).
Mohd Yaakob said the event brings together SESB vendors and users to promote close cooperation and share the latest information on SESB’s services.
“This year’s Vendor Day theme, ‘Fostering Partnership Through ESG,’ reflects our commitment to building stronger relationships with all stakeholders, including vendors, while prioritising sustainability and social responsibility.
“Through the ESG approach, we aim not only to improve business performance but also to play an essential role in environmental stewardship, promoting community welfare, and strengthening transparent governance.
“With this close cooperation, we can achieve more holistic, competitive and sustainable success for our shared future,” he said during the event.
He added that Vendor Day 2024 is also the best platform to provide clarity and insight, particularly for the public, regarding SESB’s services.
In addition to SESB’s presentations, various informative sessions will be shared by vendors participating in the exhibition.
“We will also hear presentations from the MACC Sabah regarding Section 17A of the MACC Act 2009 (Corporate Liability), ECoS, the Sabah Department of Environment (DOE), NIOSH, the Sabah Department of Occupational Safety and Health, CIDB Sabah, and ESG insights from Tenaga Nasional Berhad and ILSAS TNB.
“I hope the public attending today will fully benefit from the two-day SESB Vendor Day 2024 programme.
“For SESB, we will share the latest information, including SESB’s Vendor Payment System, the MySESB application, vendor registration, penalty and vendor blacklisting, as well as Advancing Safety Culture,” he said.
