Why is there a need for Sarawak to add something new to the law to appoint a chief electrical inspector? What has happened to the enforcement unit within the State's own power utility body, the Sarawak Electricity Supply Corporation (Sesco)?

These questions were partially answered last Friday when the state minister in charge, Dr George Chan Hong Nam, introduced amendments to the Sarawak Electricity Ordinance. Some others were left unanswered, however.

For example, why does the Chief Electrical Inspector have to be appointed by the Cabinet or Council of Ministers or the Minister and not by the corporation itself which is the body responsible for the generation and distribution of electricity in Sarawak?

Is Sesco's enforcement unit not doing its job?

According to Dr Chan, the power utility has suffered considerable losses from power thefts and it is time to take more effective action.

By this, it is clearly deduced, firstly, that Sesco's own action has not been effective in curbing thefts which have resulted in losses "going into unacceptable proportions."

Power thefts

Secondly, it is also implied that it is about time someone who is independent enough is brought in to deal with the matter.

There are now heavier penalties provided under the amended law for stealing electricity. But, according to Opposition DAP member for Bukit Assek (Sibu) Wong Ho Leng, that still may not be a deterrent.

Barisan Nasional member for Padungan, Song Swee Guan, who has just completed his four-year term as Speaker, said Sesco should analyse the reasons for the prevalence of power thefts before taking action against anyone.

Song asked whether it had anything to do with the high tariffs and possibly the lack of integrity among some utility workers who think they can make a lot of money by conspiring with consumers. The minister in charge did not respond.

Sarawak's electricity tariff is higher than peninsular Malaysia's, and loss through theft makes it difficult to consider lowering the tariffs.

Sarawak is almost as big as peninsular Malaysia but only with one-tenth of the population and consumes no more than 700 megawatts of electricity daily also about one-tenth that of the peninsular.

Hydro-power option

Although cost of generation is the same, its cost of distribution has to be higher because of consumer market size and coverage area.

Hydro-power in the long run is expected to lower electricity costs as it negates the need to transport fuel or gas to power stations as in the present case with plants in Kuching, Sibu, Bintulu and Miri.

Hydro-plants' start-up costs will be higher but this is balanced by the state's abundance of rapids and rivers in the interior. Sarawak officials prefer hydro power because it is safe and clean, and the latest dam studies now seem to favour hydro-power if certain recommendations are followed.

At this point, it is not known whether a separate legal entity is to be established to operate the Chief Electrical Inspector's Office.

The talk is that since the appointment comes from the Cabinet and not from the board of management of Sesco, it implies that Sesco and Independent Power Producers (IPP) will be placed directly under the Office for inspection purposes.

Under Sarawak's power generation laws, Sesco is licensed to generate, distribute and supply electricity to consumers. It is an offence for anyone to generate, supply and sell without a licence or approval.

Underground threat alarm

The state's only existing IPP is the coal-fired power station in Sekingkat near Kuching. Sesco has a stake in the China-built 40MW station. Another 40MW power station is to be built in Kuching under the Eighth Malaysia Plan to meet additional power requirements.

The recent amendments also provide for a licensing requirement for power distribution and this implies that Sesco is likely to eventually privatise the service and collect a fee after deducting costs from IPPs.

Dr Chan also touched on safety standards but this may be difficult to enforce in some cases unless there is a specific body to deal with it.

The move to appoint a Chief Electrical Inspector is partly the result of the decision taken a long time ago to allow Shell in Miri to use its own internal power-distribution network. Shell obtains its bulk supply from Sesco and then distributes it internally for use at various points, including oil installations.

Foreign expert help

But after an accident at a bank in Miri, the state government has been concerned not only about the safety standards of private networks but also underground gas and oil pipes which have been abandoned in and around Miri.

Many new shop and office buildings and residential estates sit above some of these underground infrastructures which are no longer in use.

Recent power outages have had some major consumers, especially those in the hi-tech manufacturing zone near Kuching, fuming because of losses suffered.

The fault had been tracked to the switch gear at the Batang Ai Hydro Dam. The state government has called in foreign experts to assist in the repair.

TONY THIEN is a freelance writer based in Kuching.