Business

Kenya Power to pass the cost of idle electricity to consumers

New data shows that electricity consumers in Kenya will still pay for idle electricity despite the slowed demand.

Contracted companies generated more that one billion kilowatt-hours in October, pushing the loss making Kenya Power has to pay for huge volumes of idle electricity as power generators raise production.

Kenya Power will pass the cost to consumers as consumption in homes and businesses remain reduced due to Covid-19 ravages.

The take-or-pay clause in contracts signed between government and power producers compels the electricity retailer to buy the agreed amount of electricity whether it needs it or not.

Records from Energy and Petroleum Regulatory Authority (EPRA) show that the excess generation in Kenya Power’s system was 227 million units in the 12 months to August 2020.

“Total units purchased from hydropower plants with a capacity equal to or above one megawatt was 372,686,997 kWh. Total units purchased from/generated by electric power producers excluding exports in October 2020 was 1,033,669,279 kWh,” Epra said in a gazette notice.

The struggling electricity retailer has raised concerns over excess generation of electricity that it has to sell even when there is no market.

Kenya Power signed purchase agreements with generators that compels it to pay for the electricity generated even when there is no market to sell it.

 


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