Kenyans will have to brace themselves for higher power bills in the coming months despite the hydro-electricity generating dams filling to capacity. This is because the Ministry of Energy has extended the contract of alternative power generating company Aggreko Kenya which was expiring at the end of June.
Aggreko is a producer of diesel generated electricity, one of the most expensive forms of electricity. The extension of Aggreko’s contract has been attributed to delays in completion of three thermal power production stations that were expected to deliver an additional 252 megawatts (MW).
This has come at a time when power distributor Kenya Power is set to review its tariffs upwards in September. Alternative electricity mainly generated by diesel results in higher bills usually reflected in the fuel charge item.
Kenya Powers proposed new tariff will see households consuming between 51 units and 1,500 units pay Sh11.79 per Kwh from Sh8.10 per Kwh while those consuming above 1,500 units will pay Sh22 per unit from Sh18.75. The tariff also proposes to increase charge per kilowatt hour (kWh) to Sh3.70 on domestic consumers for the first 50 units up from the current rate of Sh2.00 per kilowatt hour. The monthly fixed charge—meant to recover costs related to meter reading, billing and accounting will also increase from Sh120 to Sh160.
Dependency on hydro generated electricity resulted to tough times for consumers last year when the country experienced drought, making diesel generated electricity the highest back up source.