Blog Post

10 Aug
By: root 0 0

KEPSA, ERC ON ELECTRICITY TARIFF

The KEPSA Energy and Extractives sector board Chair together with the Vice Chair and a few KEPSA members, among them Kenya Association of Manufacturers, were hosted by the Director General, Energy Regulatory Commission of Kenya Mr. Pavel Oimeke at the ERC offices on 6th August 2018 to discuss the new electricity tariffs.

A presentation detailing components of the reviewed tariff was shared by the ERC technical team. The presentation composed of a summary of statistical indicators; a trend analysis of power consumption and peak demand (period 2012-2018); a time-series review of retail tariffs (since 2016); a summary of approved tariffs for different categories of power users; and a summary on the proposed changes indicating a total reduction of -6.9% from fuel cost charges, Foreign Exchange Rate Fluctuation Adjustment (FERFA), Inflation and a system loss factor. The team also presented a capacity analysis of the different sources of powers i.e. hydrothermal, geothermal, wind, biomass and solar technology over the past 5 years. However, the cost unit of power stands at 16 US cents/ KW.

It was resolved that there was need for further action specifically geared towards addressing inefficiencies and achieving stability to realise the 9 US cents/ KW promise made at the 8th Presidential Round Table (PRT). It was agreed that the numbers need further interrogation for the private sector to achieve its end of the bargain of transforming Kenya’s economy towards a progressive path and creating jobs for a shared prosperity.

To this end, continued engagements and targeted plans were agreed upon.

 

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