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The power reduction system will be extended to all companies operating at night because the energy regulator targets unused capacity in its latest production run 24 hours a day.
The changes planned by the Commission The night rates introduced last December will allow businesses such as cafeterias and shops to save millions of shillings.
Up to now, only 1,000 manufacturers and large companies benefited from discounted night fares charged at half the market price. 19659004] 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,
the distributor of Electricity Kenya Power is acquiring smart meters for small and medium-sized enterprises (SMEs), such as those installed at Billing Adjustment
Smart meters detect and adjust customer billing for the energy consumption in off-peak and off-peak hours
The tariff review is part of the proposals that the energy regulator is seeking to apply in the coming months.
Currently , only large companies and factories benefit from reduced overnight rates of 50 per cent due to stringent eligibility criteria
Manufacturers who operate at 100 per cent r daily capacity and who have no leeway to expand their business and increase their electricity consumption only benefit from a 5% reduction.
The ERC seeks to relax (19659004) At the present time, companies must exceed their normal electricity consumption in order to qualify for the reduction plan.
Above capacity during the day – a deliberate move by the government to prevent manufacturers from moving all their production lines to off-peak hours.
The condition was to ensure that Kenya Power's revenues would not be harmed. For example, a business consuming 1,000 kilowatt hours (kWh) per day would exceed 1,000 units, with additional units receiving the 50% discount.
Reduction of the energy tax
The 50 percent reduction will also be revised downward.
"We are working on a level of energy cost reduction that leaves Ken Power's revenues neutral, Kenya's commercial and industrial tariffs average about 14 shillings per unit, which is considered uncompetitive. compared to other African countries such as Ethiopia, South Africa and Egypt.
Last month, the demand for electricity in Kenya reached 1,802 megawatts, setting a new record, but still leaving more than 500 megawatts at rest or as a reserve margin.
The increase in consumption is partly determined the large users, including factories and businesses 24 hours a day.
It is expected that peak demand will continue to increase as small businesses join the special rate plan and more firms extend their operations to late in the bad it.
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