Utility bills to go up as dam water levels reduce on dry weather

The prolonged dry weather looks set to put a financial burden on households as reduced water levels in dams translate to rising electricity bills and expensive water due to rationing.

The Energy Regulatory Commission (ERC) says electricity bills will continue rising on increased use of expensive thermal power as poor weather cuts input of cheaper hydro power to the national grid.

This will see Nairobi households dig deeper into their pockets to meet their utility bills after water provider started rationing the commodity in what will prompt homes to seek expensive water from private vendors.

The UN has already warned of an impending severe drought in Kenya in early 2017 —cutting supply from water dams and setting the stage for expensive food, especially vegetables that closed the year at record prices.

“We are doing badly. If the drought continues we may see the costs of electricity rise further,” the ERC director of electricity, Joseph Oketch, said.

Electricity bills have increased for two months consecutively, hitting a 16-month high in December due to Kenya Power’s increased uptake of expensive diesel-generated power for supply to consumers amid a steep drop in cheaper hydropower.

READ: Kenyatta orders audit of thermal plants amid high cost of power

The fuel cost levy, which is paid to diesel power generators, rose to Sh2.85 per kilowatt hour (kWh) in December from Sh2.34 and is expected to rise further.

Nairobi City Water and Sewerage (NCWS) last week issued a notice of an impending water rationing beginning January due to depressed water levels at the Ndakaini Dam in Murang’a County – the main water source for the city.

The dam received 250 millimetres (mm) of water as opposed to 1,000 mm, prompting the rationing.

The utilities cost jump is set to put families on a rough financial path in January when multiple expenses compete for resources, including school fees, rent and upkeep.

Hydropower is Kenya‘s cheapest source of electricity at Sh3 per unit, but its output is often depressed by erratic weather. A unit of thermal power on average costs Sh20.
Persistent dry weather reduced hydropower generation capacity 12 per cent in the month of November to 356.8 million units.

Kenya’s thermal power intake has jumped 17 per cent to 154.4 million units, expanding its share in the national grid to 18.3 per cent from 15 per cent in October.