Julaihi explains need to amend Electricity Ordinance

THE Electricity (Amendment) Bill 2023 will enable the people and investors to participate in the production or generation of electricity through the installation of solar energy systems and cascading hydro-power in the state’s rivers.

Utility and Telecommunication Minister Datuk Seri Julaihi Narawi said the Bill seeks to amend the Electricity Ordinance (Cap. 50) which was revised in 2002 after having been in force since January 1, 1956. 

In stating this, he said under the present Ordinance, Syarikat Sesco Berhad (Sesco), now wholly owned by Sarawak Energy Berhad (SEB) is the sole generator, distributor and supplier of electricity in Sarawak. 

“This Electricity Ordinance has to be updated to advance the Sarawak government’s policies on energy transition to clean renewable energy and entrenching Sarawak’s status as the energy powerhouse or hub for the Asean region through a grid system that would enable renewable energy from Sarawak to be exported to Sabah, Brunei, Kalimantan, Singapore and even Peninsular Malaysia. 

“With the amendment, it will enable our people and investors to participate in the production or generation and for SEB to procure from these new energy sources for distribution and supply of electricity to consumers through the transmission grid system that SEB owns,” Julaihi said.

He said this during the second reading of the bill at the State Legislative Assembly (DUN) sitting here on Tuesday.

Julaihi said to accomplish these objectives, the Bill seeks to make amendments to the Ordinance to institutionalise the single buyer concept, with SEB, a company wholly owned by the state government, as the single buyer.

“It is also to  incorporate new provisions that promote the development of renewable energy namely solar and hydro-power.

“The bill also seeks amendments to regulation of water flow in rivers to be designated for the purpose of developing cascading hydro stations and installations and provide for the export of electricity to places or countries outside Sarawak.

“It will also enable SEB and any other licensees to have access to land in exercise of the rights reserved to the government under Section 37(a) of the Land Code, for the purpose of laying electricity supply lines and building towers to facilitate transmission of electricity, especially to rural areas, with provisions for payment of compensation to landowners for the use of or damage to their land.

“Besides that, the bill improves provisions for the enforcement of offences and penalties; and makes rules on levy of surcharge, resolution of disagreement over tariff and other necessary matters,” he added.

In this regard, Julaihi said the amendment of the Bill provides provisions that strengthen access to the land needed to build transmission lines or any electricity supply installation.