MoF, Petra Reviewing Request For ICPT Payment To Sabah Electricity - Amir Hamzah

KUALA LUMPUR, Nov 13 (Bernama) -- The Ministry of Finance (MoF) and the Ministry of Energy Transition and Water Transformation (Petra) are currently reviewing and considering a request for an imbalance cost pass-through (ICPT) payment of RM162 million to Sabah Electricity Sdn Bhd for the period from June to December 2023.

Finance Minister II Datuk Seri Amir Hamzah Azizan said that the ministry is also considering a moratorium on the repayment of Sabah Electricity's loan to the government, which is estimated to be around RM65 million.

In line with the agreement to transfer the electricity supply regulatory authority to the Sabah state government on Jan 3, 2024, he said the government is committed to providing an electricity subsidy of RM3.54 billion over seven years, until 2030, following the transfer of regulatory authority.

“Until September 2024, the government has disbursed RM449.4 million in electricity subsidies (from the total allocation for 2024 of RM507 million) based on claims that have been reviewed and verified by the Sabah Energy Commission to Sabah Electricity.

“The remaining allocation of about RM57.6 million will be disbursed once the claims are submitted, and this balance is expected to be fully disbursed before the end of this year," he said.

Amir Hamzah said this when winding up the debate on the Supply Bill 2025 at the committee stage for the Finance Ministry in the Dewan Rakyat today. 

He said the government has allocated RM700 million for electricity subsidies, an increase of RM193 million from the 2024 allocation of RM507 million, for 2025.

Meanwhile, he stated that the government has allocated RM34 billion to cover subsidies and cash aid for 2025.

He said the allocation was primarily for petroleum product subsidies amounting to RM23 billion and cash assistance under Sumbangan Tunai Rahmah (STR) programme totalling RM10 billion.

“Although the original allocation for 2024 was only RM35.8 billion, due to fluctuations in petroleum prices and the implementation of targeted subsidies, which only began in June 2024, the actual expenditure for subsidies and cash aid is expected to reach RM46 billion. 

"As a result, the 2025 allocation of RM34 billion represents a reduction of RM12 billion, mainly referring to savings from the targeted diesel and petrol subsidies," he added.

The Dewan Rakyat session will resume tomorrow.

-- BERNAMA