Politics and policy
Kenya Power staff at work. An off-peak power plan would see
industrialists enjoy a discount on the current tariffs between 11pm and
5am. PHOTO | FILE
By NEVILLE OTUKI, notuki@ke.nationmedia.com
In Summary
- A team of experts from Kenya Power and the ministry are working on details of the lower off-peak tariffs, which will be presented to the Energy Regulatory Commission for approval this month.
- The off-peak power plan will see industrialists enjoy a discount on the current tariffs between 11pm and 5am.
- Kenya Power plans to roll out the new power plan from January.
The Ministry of Energy is preparing cheaper off-peak
electricity tariffs, which aim to lower the cost of production for
industrialists and drive manufacturers to overnight production.
A team of experts from Kenya Power
and the ministry are working on details of the lower off-peak tariffs,
which will be presented to the Energy Regulatory Commission for approval
this month.
Kenya Power chief executive Ben Chumo said the
off-peak power plan would see industrialists enjoy a discount on the
current tariffs between 11pm and 5am.
“The team of experts will present their report to
the regulator in coming days. The introduction of the off-peak charges
will be guided by how soon we get regulatory approvals,” Dr Chumo said
on Friday, adding that was not authorised to provide pricing details .
Kenya Power plans to roll out the new power plan from January.
Energy secretary Davis Chirchir said earlier
cheaper off-peak electricity tariffs would start in the first quarter of
next year and that industrialists would enjoy a discount of 40 per cent
between 11pm and 5am.
Commercial firms consuming up to 15,000 kWh pay an
energy charge of Sh14 per kilowatt hour (kWh) while those above 15,000
kWh pay Sh8.70.
This excludes levies, fuel and forex surcharges as well as taxes that ultimately push the unit cost of electricity to Sh17.
The cheaper off-peak tariff will encourage
manufactures to shift some of their production to the off-peak period
in a move that would lower demand for power during peak hours as Kenya
struggles to meet rising electricity needs of households and businesses.
Large commercial and industrial customers account for 40 per cent of the total power consumption, according to Kenya Power data.
Moving industrial production to night-time is one
of several options the government is pursuing to lower the cost of
production that would ultimately reduce the cost of consumer goods and
make Kenyan products competitive in the international market.
The discount is expected to kick off the delayed introduction of the cheaper off-peak tariff, which was first mooted in 2008.
Manufacturers have been demanding discounts of up
to 50 per cent before shifting production to late night shifts, but
Kenya Power maintained that such a cut could push it into loss.
Ministry of Energy officials reckon the country consumes less than half the peak power demand between midnight and 5am.
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