ERC extends low cost electricity to all night businesses

The power reduction system will be extended to all companies operating at night because the energy regulator targets unused capacity in its last effort to produce 24 hours a day.

The changes foreseen by the Energy Regulatory Commission (ERC) on the Night Rates introduced in December will allow businesses like cafeterias and shops to save millions of shillings.

Up to now, only 1,000 manufacturers and large companies are benefiting from discounted overnight rates that are charged at half the market prices. 19659006] They are applicable from 10 pm to 6 am, during which time the consumption of electricity is low.

"We plan to remove the cap on the consumption or minimum consumption and make sure that any consumption in off-hours benefits from the According to the Director General of the ERC, Pavel Oimeke,

he stated that the Kenyan power distributor was supplying smart meters to small and medium-sized enterprises (SMEs) in the premises of large electricity users (more than 15,000 units per month)

Smart meters will detect and adjust customer billing for off-peak and off-peak energy consumption.

Off-peak rate review is one of the proposals that the regulator seeks to implement in the coming months.

Currently, only large companies and factories benefit from 50 per cent reduced night rates because of the strict eligibility criteria ls companies must submit. 19659006] Manufacturers who operate at 100% of their daily capacity and who have no room for maneuver to increase their production benefit from a reduction of only 5%.

The ERC seeks to relax these conditions

At present, companies must exceed their normal energy consumption to qualify for the rebate program

which means increase their production at night beyond the ceiling. The government has deliberately taken steps to prevent manufacturers from moving all their production lines outside of peak hours.

The condition was to ensure that Kenya Power's revenues were not affected.
The kilowatt-hour (kWh) per day should exceed 1,000 units, the additional units receiving the 50% reduction

The 50% reduction will also be revised downward to a rate to be determined.

"We are working on a level of energy cost reduction that leaves Kenya Power's revenues neutral, which will certainly not be at 50% energy costs," said Oimeke. Kenya's commercial and industrial tariffs average Sh14 per unit, which is considered uncompetitive compared to other African countries such as Ethiopia, South Africa and the United States. Egypt

Last month, the demand for electricity in Kenya reached 1,802 megawatts, but still leaves more than 500 megawatts idle or as a reserve margin

The increase in consumption is considered partially determined by the updated power agreement for large users, including factories and businesses operating 24 hours a day.

that peak demand will continue to increase when small businesses will adhere to the special rate plan and More companies will extend their activities at night.