SEB in strong position to discharge responsibility

THE Electricity (Amendment) Bill, 2023 strengthens Sarawak Energy Berhad’s (SEB) role as Single Buyer that will allows it to buy power generated by other producers and deliver through its transmission and distribution grid to supply electricity to customers. 

In stating this,Minister of Utility and Telecommunication Datuk Seri Julaihi Narawi  explained that under the existing Electricity (State Grid Code) Rules 2003, the concept of Single Buyer has long been established and recognised. 

“Under the said Grid Code Rules, it defines Single Buyer as “the agency appointed by the Regulator responsible for monitoring the scheduling, dispatch and operational planning by the Grid System Operator (GSO) to ensure the equitable treatment of all power producers and to meet adequacy of demand, procuring new generation capacity; and ensuring that all new Power Purchase Agreements (PPAs) between the relevant parties meet the requirements of the Grid Code and Licence requirements,”he said.

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

Julaihi said with the amendment, prospective solar power producers may enter into agreement to sell power to SEB as Single Buyer or, to sell power to another consumer where the Single Buyer does not require the solar power. 

“The provision for the Single Buyer under the proposed Bill will not infringe the Competition Act 2010 and this aligns with Section 3(4)(a) of the Competition Act 2010. 

“Under this section, the commercial activity of the Single Buyer is a legislative requirement of a governmental authority, and is therefore excluded from the Competition Act 2010,” he said.

Julaihi said the Sarawak government is confident that SEB will be able to discharge its statutory obligations imposed by the proposed amendments. 

“SEB owns the grid transmission system and is the State Grid Code Operator. These factors place SEB in a very strong position to be the Single Buyer and investors will have confidence that SEB will be able to procure the power, such as solar or hydro and other resources, at equitable prices once their development for such power generation projects are completed and commissione,” he said.

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