Drought lifts power prices to record high

A KPLC employee inspects a meter box in Nairobi’s Mathare slums. PHOTO | HEZRON NJOROGE | NMG

What you need to know:

  • Customers who consumed 200 kilowatt hour (kWh) last month paid Sh4,762, up from Sh4,518 in April and Sh4,178 a year ago.
  • The rise is attributed to May’s fuel cost levy when electricity bills jumped by the biggest margin in recent years on reduced use of cheaper hydropower following poor rains.
  • The government had promised cheaper electricity from increased use of the two green sources — Lake Turkana Wind and Garissa Solar plant.

Electricity prices last month reached a historic high, driven by the monthly adjusted fuel costs level that is passed down to consumers.

Official data released Friday showed consumers who consumed 200 kilowatt hour (kWh) last month paid Sh4,762, up from Sh4,518 in April and Sh4,178 a year ago.

This is the highest payment ever, underlining the push by industrialists for lower power charges to allow Kenya manufacturers compete well with their counterparts in South Africa and Egypt.

The rise is attributed to May’s fuel cost levy when electricity bills jumped by the biggest margin in recent years on reduced use of cheaper hydropower following poor rains.

The dry weather forced Kenya to generate more electricity using diesel, setting the stage for a rise in electricity prices through the monthly adjusted fuel surcharge levy. Energy and Petroleum Regulatory Authority (EPRA) data shows that fuel levy — which is influenced by the share of electricity from diesel generators — rose to Sh3.75 per kilowatt hour (kWh), up from Sh2.75 last month.

The Sh3.75 charge took effect on May 10 for prepaid consumers with postpaid users set to feel the pain this month.

The additional monthly charges will be highest rise since May 2014 when the fuel levy rose by Sh2.03.

“The FCC (fuel cost charge) has slightly gone up due to the prolonged drought we just went through. It would have been worse if we had no intervention from the wind power, we would have experienced the highest ever FCC coupled with some power rationing,” Energy Principal Secretary Joseph Njoroge said earlier. The drought cut generation hydro power by 39 percent or 163 million kWh between August and February, EPRA data shows.

This has wiped out the benefits of the additional 151 million kWh of wind and solar power that was injected in the same period. EPRA is yet to release April data, which look set to be worse compared to February on the delayed rains.

The government had promised cheaper electricity from increased use of the two green sources — Lake Turkana Wind and Garissa Solar plant — by reducing costly thermal power and ultimately cutting the fuel cost adjustment levy in bills.

At Sh3.75, homes and business will pay an additional Sh930 million in fuel costs charges based on the average monthly consumption.

Together with other monthly charges such as a fuel-cost charge for thermal plants, the bills are some of the highest in the region.

Energy experts say Kenya’s electricity is also made expensive by high transmission losses of 18.9 percent, from theft through illegal connections and technical reasons.

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