Kenya’s Price for energy Importation and electricity hits another notch higher, this is according to Kenya Power’s annual report that indicated that their cost of energy production has consequentially gone higher compared to its cost same time last year.
This year alone from June has seen Kenya pay a dime higher for electricity imports. In Uganda, the payment has trippled from atleast 1.2 Billion to now 3.9 Billion.
This could partly to attributed to the drought that hit the country early this year which translated to low hydro-electric energy, low powered generators as well as reduced geothermal output.
Kenya Power has seen its import rise from 174 per cent to 184 Million Units to cover for the electricity and energy consumption. The huge shortfall in hydro-power led to prolonged increase in imports and expensive diesel-fired electricity.
Among the majorly hit regions was western region and particularly Sondu Miriu hydro power station . This is according reports by The Energy Regulatory Commission, ERC during one of the annual review meetings. Nairobi and Central regions were also among the regions affected as Ndakaini Dam experienced low water volumes for both domestic and hydro-electric power thus necessitating power imports for maintenance of businesses and industries in the regions.
Kenya has two electricity transmission line one connecting Uganda via Tororo and the other one connecting Ethiopia to Moyale for bulk power imports. However, Imports from these countries are higher as they charger Sh 21 Per Kwh from around Sh 8 for direct power from Kenya. These high import charges could be attributed to this high cost compared to domestic power.
For large businesses and Manufacturing industries, the cost will escalate greatly and therefore the need to prepare for tougher times moving forward. Measures such as night production may seem the business reduce its electricity cost if the Energy Regulatory Committee will keep its word concerning the reduced night tariff.
As a country, Kenya may need to rethink it’s way forward concerning energy production and consumption and necessary measures put across to help reduce cost. These high costs may eventually lead to high accumulated national debts and low economic growth.