kawi254 wrote:Uhuru orders review of electricity tariffs for SMEsHow can electricity tariffs be reduced (reviewed) without renegotiating thermal PPAs?
I occasionally drive by Athi-River Gulf Power and i have never found it generating power i.e they just being paid to sit idle Thanks to Kiraitu Murungi and Kibaki company. An idea is for GoK to renegotiate with Rabai & Tsavo whose PPA ends in 2023 for an early exit.
1) Ministry of Energy has made application to stop charging VAT on Fuel Levy component of electricity bill as that amounts to double taxation as Fuel already taxed VAT.
2) As per
Aug 2018 KNBS figures Thermal generation contribution was 9% in July 2018 down from a high of 30% in February 2018 but consumer hasn't seen the reduced price of more Geothermal and Hydro generation [
Thanking the long rains 2018] .
3) As of 16.10.2018 LTWP is averaging 139 MW with 212/365 wind turbines online but this cheap wind energy is not hitting consumers pockets.
4) Early 2019 Kengen will online 168 MW of Olkaria V but Jubilee Govt has lied before how geothermal power will reduce our bills but i remain hopeful.
Boss, Rabai Runs everyday....its the only Thermal with Must Run Attribute due to system stability and voltage support...Tsavo Power Runs between 6.30pm to 10pm... currently when hydrology is good....
The VAT on electricity is not going anywhere..
When Hydrology improvement happen as currently, the effect is via Reduction in Fuel Cost Charge... this month the FCC is Ksh 2.5 per kwh Compared to around 5 shillings early this year...
Last month LTWP generated around 2 million units ....When finally all turbines are commissioned , they will be doing around 120 Million units per month...
Reduction in Tariffs , especially the Base tariffs will affect KPLC... Whenever tariff cuts happen, it goes to Kplc Opex and Return on the Asset Base...