Breakdowns of Power Plants & Low Winds Among Factors That Made Electricity Expensive

Kenya Power technicians installing a transformer in Kisumu County on April 5, 2022.
Kenya Power technicians installing a transformer in Kisumu County on April 5, 2022.
Photo
Kenya Power

The Energy Petroleum and Regulatory Authority (EPRA) has revealed factors that made power bills shoot up for specific months in 2023.

In its  Bi-Annual Energy & Petroleum Statistics Report, EPRA revealed that some of the power bills fluctuated owing to factors such as low winds, breakdown of geothermal plants and depreciation of the shilling.

EPRA explained that these factors influenced the set rates for pass-through charges that are usually applied when calculating bills and tokens.

For instance, it was noted that in November, the rates charged for power generated from fuel increased significantly owing to the breakdown of geothermal plants and low winds.

The Menengai Geothermal Power Project in Nakuru on Thursday, June 8, 2023
The Menengai Geothermal Power Project in Nakuru on Thursday, June 8, 2023
DPPS

Owing to this, Kenya Power had to rely mostly on thermal power to meet the demands of the customers.

"The Fuel Energy Charge (FEC) demonstrated both upward and downward movements during the period under review, the highest charge at Ksh5.74/kWh in November 2023 and the lowest at Ksh3.98/kWh in December.

"These fluctuations are attributed to poor hydrology, varying wind output, and breakdowns in some geothermal power plants, leading to increased thermal power generation fueled by imported fossil fuel," read the report in part.

On the other hand, the Shilling depreciated for the better part of 2023 hence the fluctuations of the Forex charges that were passed down to the consumers.

"The FERFA levy, designed to offset the impact of foreign exchange rate fluctuations on power generation expenses, was highest in December at Ksh. 3.1687/kWh and lowest in October at Ksh. 0.8003/kWh," read the report in part.

However, EPRA noted that there were some months when other rates were reduced owing to the rains that were experienced in some months in 2023.

For instance, in November, the Water Resource Authority (WRA) levy, which is a levy for power generated from hydropower was charged at Ksh0.01/kWh owing to the increased rains. This was the time when there was El Nino in parts of the country.

Meanwhile, electricity prices are projected to drop this month owing to the appreciation of the Shilling and increased rains.

EPRA DG Daniel Kiptoo speaking during a stakeholders forum on February 5, 2024.
EPRA DG Daniel Kiptoo speaking during a stakeholders forum on February 5, 2024.
Photo
EPRA
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