The Kenya Power and Lighting Company Limited (KPLC), held a joint press conference with agencies in the electricity ecosystem, aiming at unbundling the proposed Electricity Retail Tariff (RTA) Application, for the control period 2022/23 to 2025/26.
The Energy and Petroleum Regulatory Authority (EPRA), Director General (DG), Daniel Kiptoo, stated that they received an RTA application from KPLC, which they are still reviewing and making some adjustments before approval.
“For us as the regulators, our mandate is to ensure the retail tariffs are just as reasonable and should allow the investors in the sector to be compensated adequately, for risks assumed and that customers pay for costs that are prudently recurred,” said Kiptoo.
Meanwhile the Acting Managing Director (MD) KPLC, Geoffrey Muli, stated that demand for power supply since the year 2020 has been growing drastically, however, for the energy generation mix during peak, a lot of thermal energy is dispatched to support the demand of energy, since solar does not perform well during that period.
Muli cited that between 2012 and 2022, high voltage lines and medium voltage lines, expanded from 47,035 kilometers (Km) to 89,887 Km, thus increasing the maintenance cost of the transmission lines.
Moreover, substations belonging to KETRACO and KPLC, grew from 264 to 365, while the low voltage lines rose from 132,489 Km to 20,050 Km.
He said that the rapid growth led to the rise of their customers from 2.03 to 9.01 million.
The MD noted that for them to be able to support people’s lives and their businesses, they need quality power supply, reliable power supply and the system has to be efficient and flexible.
“The amount required for non-fuel power purchase in the current tariff is Sh.7.68, while the proposed tariff is Sh.11.68, fuel in the current tariff is Sh.0.61, while the proposed one is Sh.1.5 bringing the total of power purchase to grow from Sh.8.29 to Sh.13.18,” said Muli.
He stated that KPLC have a project for the distribution system automation, which will enable the controller of power supply, to switch off power in an area which has some challenges to prevent damages until the problem is solved.
According to the MD, the proposed Bill from RTA will result in a 13 percent increment on lifeline customers, and 20 percent on the ordinary domestic customers.
“The power generating sources are; thermal, solar hydro, wind, geothermal, biomass,” said Muli.
By Trepher Leslie and Sylvia Kavisi
