Sigh of relief as KPLC adjusts prices

Though the Meteorological department is forecasting a period of light rains to August, KenGen, the bulk power generator, indicated that its hydro power generation dams are full and that the light rains would not hurt their capacities.

This suggests reduced reliance on thermal power in meeting the country’s power needs, hence cheaper electricity.

Last month, KPLC bought 556 million kilowatts hour (Kwh) of electricity with thermal contributing 163 million Kwh, according to the Kenya Gazette notice.

This means that thermal accounted for 28 per cent of total amount of electricity that KPLC bought from KenGen and Independent Power Producers (IPPs), down from 66.4 per cent in November.

The falling cost of power is emerging at a time when the country is facing risks of power shortfall to feed its growing economy.

At present the reserve margin -- the gap between peak demand and what is available -- has shrunk to below 10 per cent compared to the optimum limit of 15 per cent.

Policy makers have identified supply and cost of power as one of the biggest challenges the government will face in coming years.

The government has allocated Sh34.1 billion this year to help in the construction of new power plants and reinforcement of the country’s transmission system, which leaks a significant amount of power.

The Energy Regulatory Commission (ERC) is also working on a new electricity calculation formula, especially the fuel cost charge, to reduce volatility in the cost of power.