KUCHING, Jan 9: Cahya Mata Sarawak Berhad (Cahya Mata) subsidiary, Cahya Mata Phosphates Industries Sdn Bhd (CMPI), has been slapped with a RM342.25 million counterclaim from State utility firm Syarikat Sesco Bhd amid their legal dispute on power supply disconnection.
According to a report by the New Straits Times, Cahya Mata, in a stock exchange filing on Jan 5, said that the counterclaim was made in Sesco’s memorial (presentation of facts and evidence to support its claims) against CMPI.
“The evidentiary hearing has been fixed for August 26 to August 30 before the arbitral tribunal,” Cahya Mata said.
Since 2022, CMPI and Sesco have been involved in arbitration proceedings concerning a purchase power agreement (PPA) dated January 2019 for CMPI’s phosphate plant at Samalaju Industrial Park in Bintulu.
Under the agreement, CMPI was required to take up a minimum electric supply capacity based on the computation in the PPA upon commencement of commercial operations of the plant or cover any shortfall in electricity consumption.
The dispute started when Sesco billed CMPI for cumulative electricity consumption and payment security shortfall amounting to RM266 million as of December 2022, despite Cahya Mata’s argument that the plant has not started commercial operations yet.
In July 2023, Sesco shut off the electricity supply to CMPI’s plants after the Court of Appeal dismissed CMPI’s request for a preservation order to bar Sesco from terminating power supply to the plant.
Following this, CMPI has claimed against Sesco RM1,207,326,936 for losses suffered as a result of the discontinuation of electricity supply by Sesco.
However, Sesco has instead responded with a notice counterclaiming RM342.2 million for the supposedly unpaid power bill and other incidentals. — DayakDaily
