Power Play: Sabah to regulate energy sector within the State
04 January 2024
The following subsidiary legislation were gazetted on 27 December 2023 and came into force on 3 January 2024:
- Borneo States (Legislative Powers) (Amendment) (No. 2) Order 2023 [P.U.(A) 393/2023] – This Order confers powers on the Sabah State Legislative Assembly to enact laws relating to “Electricity” by introducing a new item 7 to Part I of the Schedule to the Borneo States (Legislative Powers) Order, 1963 [L.N. 17/1964] (“Legislative Powers Order”);
- Electricity Supply (Suspension of Operation of the Act for Sabah) Order 2023 [P.U.(A) 394/2023] – This Order suspends the operation of the Electricity Supply Act 1990 for Sabah;
- Energy Commission (Suspension of Operation of the Act for Sabah) (No. 2) Order 2023 [P.U.(A) 395/2023] – This Order suspends the operation of the Energy Commission Act 2001 for Sabah;
- Renewable Energy (Suspension of Operation of the Act for Sabah) Order 2023 [P.U.(A) 396/2023] – This Order suspends the operation of the Renewable Energy Act 2011 for Sabah; and
- Sustainable Energy Development Authority (Suspension of Operation of the Act for Sabah) Order 2023 [P.U.(A) 397/2023] – This Order suspends the operation of the Sustainable Energy Development Authority Act 2011 for Sabah.
The powers to enact laws in relation to the distribution of gas in Sabah were transferred to the Sabah State Legislative Assembly through various statutory instruments that took effect on 10 January 2023. Our Alert on this development can be read
here.
The Orders gazetted on 27 December 2023 further the Federal Government’s commitment under the Malaysia Agreement 1963 to transfer the powers to regulate the energy sector in Sabah to the Sabah State Government.
Following from the Orders issued by the Federal Government on 27 December 2023, the Sabah State Legislative Assembly held a one-day special sitting on 3 January 2024 to pass the Sabah Energy Commission (Amendment) Bill 2024, the Electricity Supply Bill 2024 and the Sabah Renewable Energy Bill 2024. When these Bills become law, the powers to regulate the energy sector in Sabah will devolve to the State of Sabah.
1
Alert by Fariz Abdul Aziz (Partner) of the Oil & Gas and Energy Practice of Skrine.
1 Sabah assembly passes energy bills to take control of electricity supply;
The Edge CEO Morning Brief; 4 January 2024.
This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.