Kenya regulator reduces power tariffs

Electricity consumers are set to benefit from a gradual reduction in the cost of power in the next three years, when Tanzania Electric Supply Company (Tanesco) is proposing tariff increases at various rates ranging from 34 to 90 per cent.

The Energy Regulatory Commission announced yesterday that the average cost of a unit of power would go down to Ksh15.51 (Sh300) per kilowatt hour (kWh) in December from the current Ksh15.95 (Sh320).

The cost will reduce further to Ksh13.44 (Sh260) in July next year and to Ksh12.26 (Sh240) per unit by 2015.

By the third year, consumers using less than 50 units of power will have their power bills reduce by 7.9 per cent.

The 1.3 million consumers in this category comprise 58 per cent of total number of electricity consumers.

ERC said the cost of power would reduce by up to 11.1 per cent for small commercial users, who are 2.5 per cent of electricity users.

The tariff review comes as the government reduces reliance on expensive sources of emergency power to renewable sources such as geothermal and wind.

The review is the first in five years and comes on the back of a push by Kenya Power, which has unsuccessfully sought to increase the rates since 2011.

Kenya’s move comes at a time when Tanzania Electric Supply Company (Tanesco) is proposing tariff increases at various rates ranging from 34 to 90 per cent.
Source: The Citizen, reported from Nairobi, Kenya
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