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Kenya Power Company staff are working on a power line at Tetu in Nyeri on February 2, 2018. Some consumers are now complaining about false billing. Some consumers now want the company to give them the exact bill without disconnecting their supply after receiving an incorrect billing estimate. [Photo:Kibata Kihu/Standard]
Kenya Power will bear a heavier load for the operation of an old power transmission infrastructure that has led to high system losses.
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This follows a downward revision of the amount that the electricity distributor can recover from its customers for system losses.
The Energy Regulatory Commission (ERC) said that it had reduced the amount of system losses that Kenya Power can recover from its customers.
The regulator said Monday that the company would now recover 14.9 percent of system losses, down 15.9 percent previously. The utility company will have to absorb system losses above 14.9 percent. The losses are the difference between what Kenya Power buys from electricity producers and what it sells to consumers.
According to the company's annual report, losses of the system stood at 18.9% in June of last year, which meant that it was outperforming the market. The target was set at 15.9 percent, which could have cost him billions of shillings.
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Pavel Oimeke, the CEO of ERC, said that the company would need to find ways to be more effective in stemming the power losses that occur when the evacuation of producers to consumers. "This means that Kenya Power must be more efficient and that they will have to achieve higher goals than their results," he said.
New Rates
System losses have averaged about 18 percent over the years. They are taken into account in the electricity tariffs, allowing the energy distributor to recover the money from the consumers.
ERC released the new rates on Monday, causing a storm on the part of consumers as a result of increased costs for some categories of national electricity users who were expecting to a reduction of their bills.
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In addition to the old and inefficient energy transmission infrastructure, the distance between the source of production of rh K K,,,,,,,,,,,, electricity and consumers constitute other loss factors.
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