Kenya: fuel cost increased

Electricity distributor the Kenya Power and Lighting Company has increased the fuel cost segment of its billing, signalling that consumers are unlikely to get relief from the heavy cost burden they have been bearing in recent months despite the onset of heavy rains.

The rains were expected to cause an immediate drop in the cost of electricity as the country consumed more of the less expensive hydro power and cut back on the more expensive thermal power.

A steep drop in hydro power’s contribution to the national grid has seen electricity bills surge by a margin of 60 per cent since March on the back of rising fuel costs charges — a varying item on the bills that is linked to the amount of power on the national grid that is generated from thermal sources.

Power producer KenGen and the Energy Regulatory Commission (ERC) reckon that the hydro power dams will be replenished in December at the earliest should the rains persist at the current rate.

“We have filled a meter within two days and if the rains continue like this, we should get to 30 meters in December,” a senior KenGen executive said.

Full article: Business Daily Africa