3 important information that Awang Tengah has not disclosed to the people of Sarawak

There is no need for me to apologise but instead, Awang Tengah should make full and frank disclosure to the people of the Sarawak about the profit and accounts of SESCO and Sarawak Energy Berhad (SEB).

Awang Tengah argued that in 2012, SESCO’s revenue is RM1.8 billion and a profit of RM266 million. If electricity prices were reduced by 30%, then SESCO’s income would be reduced by approximately RM500 million and thus SESCO will be making a loss of RM200 million.

This argument may sound plausible if we are still living in the year 2012. 

I used the SESCO’s account figures in 2012 because that was the reported figure and I do not have access to the figures for the year 2013 and 2014.  However, as Minister, Awang Tengah surely has SESCO’s 2013 and 2014 figures, but he did not disclose the figures to the people of Sarawak.

There are 3 important information that Awang Tengah has not disclosed to the people of Sarawak, namely:

1.         SESCO’s actual revenue and profit in year 2013 and 2014

Although I do not have the exact profit and loss accounting figure of SESCO for the year 2013, but we can easily calculate and estimate its approximate profits based on the huge increase in the level of demand for electricity in Sarawak.

According to the answers given by Awang Tengah in DUN, Sarawak’s electricity demand for the years 2012 – 2016 are as follows:

Committed Demand (MW)
There is a huge increase in the demand for electricity in Sarawak from 2012 to 2013.  This is mainly due to the sale of electricity to the smelting plants in SCORE, the non-organic customers of SESCO.

If we compare the two figures in 2012 and 2014, the demand and sale of electricity by SESCO doubled and this double in sale is mainly due to sale to the smelting plants in SCORE.  The call by DAP for tariff reduction of 30% will not affect the price for the sale of electricity to these plants.

Therefore, with this double in sales of electricity, given the similar profit margin, the profit of SESCO can easily double to RM500 million for the year 2014, unless there is manipulation of accounts in reporting of the profits. 

This alone can be sufficient to cushion the 30% tariff reduction for Sarawakian.

2.         SESCO is engaging in profit transfer to other subsidiary companies of SEB

Within the SEB group of companies, there are SESCO, and other power plant companies selling electricity to SESCO.  Amongst these power plant companies are the likes of Sarawak Power Generation Sdn Bhd and Sejingkat Power Corporation Sdn Bhd. 

These companies are wholly-owned subsidiaries of SEB and they only sell electricity to SESCO who then re-sell the electricity to the general consumers in Sarawak.

For the financial year of 2012, Sarawak Power Generation Sdn Bhd is earns a profit of RM45 million and for the financial year of 2013, Sejingkat Power Corporation Sdn Bhd earns an after-tax profit of RM23 million.

Their profits comes from the internal pricing of electricity sales to SESCO which in turn reduces SESCO’s profit.  However, as a group of company under SEB Group, their profit should be taken also as the profits of SESCO or SEB.

These have been conveniently omitted by Awang Tengah.

3.         Residue power generation from Bakun can also benefit Sarawakian

Not all the power generated by the Bakun dam will be committed for sale to the smelting plants in SCORE.  Bakun (Sarawak Hydro) only sells firm energy to these smelting plants, and there is still some electricity energy produced which cannot be committed for sale to these smelting plants.

These are called the non-firm electricity energy.

These non-firm electricity can be still be sold to the people of Sarawak.  Given the large power generation capacity of Bakun and its agreed price of RM0.065 per KWh, this residual power (non-firm power) can reduce the costs of generation for the people by at least 20%. 

All these 3 piece of information should be within the knowledge of Awang Tengah who is the minister in charge of utilities.  Why is he not disclosing these relevant information to the people and to the Dewan Undangan Negeri? 

Not only did he not disclose these information in Dewan Undangan Negeri, he refused to allow questions to be asked in relation thereto when I tried to interject him in his winding-up speech in DUN.

As such, there is no need for me to apologise, but on the contrary, Awang Tengah should apologise for not disclosing the figures.

I wish again to remind Awang Tengah and the Sarawak Barisan Nasional government that they owe their position to the people, and thus they should work for the benefit of the people, NOT for the profit figures of SESCO and SEB.