Kenya Power Attributes Increased Energy Costs to Efforts to Recoup Investment

Nairobi — Kenya Power has attributed increased cost of electricity to ongoing efforts to recover funds committed to capital-intensive investments by the utility firm.

Speaking to Spice FM on Tuesday, Kenya Power Chief Executive Officer Joseph Siror said power costs would have been lower if the grid and factors related to distribution remained unchanged.

“If we were to retain the investment as they were in ten years ago without investing on anything more, indeed the cost of power would be quite cheap because the capital investment/addition is not coming in,” he said.

“But when you invest new plans and expanding then there is a capital injection that has to be recovered using that tariff and it is for that reason that as we continue to invest in energy sector then the cost has to be recovered.”

Siror however assured that power costs will ease once the firm recoups the said investments adding that a schedule with clear timelines was in place.

“But the beautiful thing as an assurance that I can give is that as the capital investment is being recovered using the tariffs, there is a timeline that it shall be fully recovered and once recovered the cost will drop to the least,” he explained.

13-20 per cent rise

The utility firm announced an increase in energy costs for domestic consumers at the beginning of the year by between 13 and 20 percent.

In the new tariff, consumers under a newly structured life-line consumption band of below 30 kilowatt-hours (kWh) per month will pay Sh20.5 per unit up from Sh18.14, a 13 percent jump.

The Sh20.5 charge entails a Sh14 consumption charge and Sh6.5 comprising taxes and levies.

Further, ordinary domestic consumers whose usage exceeds 30kWh per month will pay Sh26.4 per unit up from Sh22, a 20 percent increase.

The rate comprises a Sh21.00 consumption charge and Sh5.4 charge on tax and levies.

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