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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 in December will allow businesses such as cafeterias and shops to save millions of shillings.
Up to now, only 1,000 manufacturers and large companies have benefited from discounted night fares that are charged at half the market prices. 19659002] 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 consumption or minimum consumption and make sure that any off-peak consumption benefits the ERC Director General, Pavel Oimeke, said:
said the Kenya Power electricity distributor was purchasing smart meters for small and medium-sized enterprises (SMEs), such as those installed in the premises of major electricity users (more than 15,000 units per year). month)
Smart meters will detect and adjust customers' billing for off-peak and off-peak energy consumption.
Off-peak tariff revision is part of "
Currently, only Large companies and factories benefit from reduced night rates of 50 percent due to the stringent eligibility criteria that businesses must meet to benefit tariff reductions. 19659002] Manufacturers who operate at 100 percent of their daily capacity and who have no leeway to increase their production benefit from a reduction of only 5 percent.
The ERC seeks to relax these conditions
At the present time, companies must exceed their normal energy consumption to be eligible for the discount scheme
which means increase their production at night beyond the ceiling. action 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 were not affected.
The kilowatt-hour (kWh) per day was to exceed 1,000 units, the additional units achieving 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 Ken Power's revenue neutral, which will certainly not be 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
The demand for electricity in Kenya is 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 adhere to the plan. special rates and that more than 3 9, companies will expand their operations in the night.
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