It is no secret that SESB has faced financial hurdles, despite receiving heavy subsidies from the Federal Government to maintain electricity tariffs below the cost of supply. Presently, SESB sells electricity at a base average tariff of 34.52 sen per unit electricity , considerably lower than the required average cost of power generation at 43.83 sen/kWh. This discrepancy results in an average loss of 10 sen/kWh on each unit of electricity sold.
SESB aims to address this by reducing the System Average Interruption Duration Index to 100 – 150 minutes by the end of 2023. Another pressing concern which constitutes a major strategic challenge is SESB’s reserve capacity. This margin falls below the recommended more than 30 percent set by prudent utility practices.
Indeed, electricity is the heart of the economy. It drives industries, commercial enterprises, and households alike, fuelling economic growth and job creation. In an effort to connect Ranau to the grid, the Federal Government through the Ministry of Rural and Regional Development programme called Rural Electrification Program allocated RM230 Million to install the grid from Kota Belud to Ranau in 2011.