Jubilee Dev- Quest for 24hrs Economy begins as Kenya Power slashed night rates by 33%

spear

Village Sponsor
#1
Large firms to enjoy cheaper night electricity from today
FRIDAY, DECEMBER 1, 2017 9:34
BY NEVILLE OTUKI

Kenya will from today cut power tariffs by up to a third for large businesses and manufacturers that shift their operations to late night hours.

The Energy Regulatory Commission (ERC) says the discounted tariffs are for commercial and industrial power users who operate from 10pm to 6am when most households and businesses shut down and electricity demand is low.

The energy charge billed by Kenya Power for commercial consumers metered at above 11 kilovolts (kV) will decrease by a third to Sh5 per kilowatt hour (kWh) from Sh7.50 per unit.

Commercial users, who are metered at between 450 volts to 11 kilovolts, will pay Sh7 per unit from Sh9.20.

Pass on benefits

The energy regulator expects industrialists to pass the benefits of lower costs on to consumers in form of cheaper commodities.

“The introduction of the night tariffs will help promote commercial and industrial growth in Kenya while maximising on the surplus energy available at off-peak hours,” said ERC acting director-general Pavel Oimeke.

Kenya charges firms about Sh15.70 per kilowatt hour when taxes and other levies are incorporated, which is seen as uncompetitive compared with other African nations such as Ethiopia, South Africa and Egypt.

Taxes account for about a third of electricity tariffs and the government said it would consider whether some of the charges could be reduced.

The night-time electricity tariffs come as the country moves to add 300 megawatts from the Lake Turkana wind power project, which is complete but delays to construct a transmission line have hampered efforts to connect the power to the national grid.

The government has been trying to boost investments in the industrial sector in recent years with modest success.

Ease pressure

The shift by manufacturers to night-time production is expected to ease demand pressure during peak hours, which often force Kenya Power to switch on the more expensive diesel generators to stabilise the supply.

Kenya consumes less than half the peak power demand (currently 1,727 megawatts) between midnight and 5am when homes sleep.

The peak time stretches from 9am and climaxes at between 6pm and 9pm when Kenyans return home from work switching on house lighting, cooking appliances and TVs.
 

kasaman

Village Elder
#8
Large firms to enjoy cheaper night electricity from today
FRIDAY, DECEMBER 1, 2017 9:34
BY NEVILLE OTUKI

Kenya will from today cut power tariffs by up to a third for large businesses and manufacturers that shift their operations to late night hours.

The Energy Regulatory Commission (ERC) says the discounted tariffs are for commercial and industrial power users who operate from 10pm to 6am when most households and businesses shut down and electricity demand is low.

The energy charge billed by Kenya Power for commercial consumers metered at above 11 kilovolts (kV) will decrease by a third to Sh5 per kilowatt hour (kWh) from Sh7.50 per unit.

Commercial users, who are metered at between 450 volts to 11 kilovolts, will pay Sh7 per unit from Sh9.20.

Pass on benefits

The energy regulator expects industrialists to pass the benefits of lower costs on to consumers in form of cheaper commodities.

“The introduction of the night tariffs will help promote commercial and industrial growth in Kenya while maximising on the surplus energy available at off-peak hours,” said ERC acting director-general Pavel Oimeke.

Kenya charges firms about Sh15.70 per kilowatt hour when taxes and other levies are incorporated, which is seen as uncompetitive compared with other African nations such as Ethiopia, South Africa and Egypt.

Taxes account for about a third of electricity tariffs and the government said it would consider whether some of the charges could be reduced.

The night-time electricity tariffs come as the country moves to add 300 megawatts from the Lake Turkana wind power project, which is complete but delays to construct a transmission line have hampered efforts to connect the power to the national grid.

The government has been trying to boost investments in the industrial sector in recent years with modest success.

Ease pressure

The shift by manufacturers to night-time production is expected to ease demand pressure during peak hours, which often force Kenya Power to switch on the more expensive diesel generators to stabilise the supply.

Kenya consumes less than half the peak power demand (currently 1,727 megawatts) between midnight and 5am when homes sleep.

The peak time stretches from 9am and climaxes at between 6pm and 9pm when Kenyans return home from work switching on house lighting, cooking appliances and TVs.
A clear indication of reliable cheap power to propel our economy. ..watu wa 'resist' mko wapi ?
 

spear

Village Sponsor
#16
By June 2018 it will be ready. Chief of staff Kinyua vetoed LTWP contract where we would be forced to pay for power we haven't consumed. Its not entirely our fault. Land way leave contracts took longer and their spanish contractor went bankrupt as well. Besides even they themselves have failed to start power production by this Dec and pushed it to March 2018. Lastly the major mid term problem is in Ethiopia which is also supposed to use the same line to transmit 2000MW from Gibe power plant to meet our industrial needs. Ethiopian citizens are mad about it because they don't have power themselves. Only 27% of the country has power.
 

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