Electricity bills are unlikely to increase following the injection of cheaper wind and solar power into the national grid, which will cut reliance on thermal power and ultimately the fuel cost levy.
The Energy Regulatory Commission (ERC) says electricity from Lake Turkana Wind Power was injected in the grid last month, which gave room for the regulator cut retail electricity prices for some domestic customers and small businesses effective last Thursday.
The 310 megawatt (MW) Turkana wind farm, which was switched on in October, was now injecting 160-170MW into the grid, while the delayed 54MW Garissa solar plant is expected to be connected to the grid later this month.
The two will cut reliance on expensive thermal power, which will reduce the fuel cost adjustment in bills which is influenced by the share of electricity from diesel generators.
“Cheap electricity is coming in from the renewables; the Turkana wind (power) is here with us and Garissa solar will be coming in November,” ERC director-general Pavel Oimeke said.
“It will leverage on the cost of electricity because when you have cheap generation it means the cost of power also comes down,” Mr Oimeke said.
The fuel cost charge is currently Sh2.50 per kWh.