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Economy

ERC study puts cheap night electricity tariffs in limbo

Kenya Power and industrialists failed to reach a deal on the discount to be offered on the off-peak tariff. FILE PHOTO | NMG
Kenya Power and industrialists failed to reach a deal on the discount to be offered on the off-peak tariff. FILE PHOTO | NMG 

Kenya’s plan to introduce cheaper off-peak power tariffs as an incentive for manufacturers to shift their production to late night hours is in limbo after a study found it unviable.

The Energy Regulatory Commission (ERC) said the study by German consultant, Lahmeyer International, found the plan would yield “little benefits” in terms of power cost discounts to manufacturers and economic merit of night power consumption.

The limbo has denied consumers cheaper goods since Energy ministry officials expected industrialists to cut prices in return for the proposed lower power bills.

The special night tariffs have delayed for more than 10 years since the government first mooted the plan meant to slash production costs and ease pressure on power supply during the daytime.

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