Bring the cost of power down to grow economy

Eelectricity bills have gone up again, further burdening consumers struggling with a high cost of living. The Energy and Petroleum Regulatory Authority (Epra) says the increase has been occasioned by the rise in fuel cost charge, which has hit a 38-month high.

Unaffordable electricity, compounded with a high cost of fuel which has translated to expensive transport of goods and services, will add inflationary pressure in an economy already strained by the effects of Covid-19.

Kenya Power must fix this rising cost of electricity once and for all. And the best way to do this is by reviewing the power purchase agreements (PPA) signed between Kenya Power and electricity generators.

As their contracts come to an end soon, renegotiating the energy prices and other terms downwards will cushion consumers.

The levy is influenced by the share of electricity from diesel generators and had been on a gradual rise since May last year due to an increase in crude oil prices.

The good news is that President Uhuru Kenyatta had already appointed a task force to review the purchase agreements.

The 15-member team is expected to give its recommendations any time soon as their work started in March.

Their recommendations must be adhered to the letter and not left to gather dust on the shelf.

For years, energy consumers have been paying for high electricity charges, with some of the costs being attributed to idle capacity charges.

Under a typical power purchase agreement, a power producer gets paid for any electricity produced, even if Kenya Power cannot sell it to consumers due to excess capacity and other reasons.

It is time for Kenya Power to reduce its system losses and pass the benefits to consumers with lower bills because no economy can grow with a never-ending rise in electricity costs.