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Large businesses and manufacturers operating during night hours will benefit from reduced power tariffs from 1 December 2017.The Energy Regulatory Commission (ERC) has confirmed that from 1 December, 2017 it will offer night tariffs for commercial and industrial power users who operate from 11pm to 5am, a window within which demand is low.

Business Daily reported that the energy charge, billed by Kenya Power for commercial consumers metered at above 11 kV, will decrease by a third to Sh5 ($0.048) per kWh from Sh7.50 ($0.077) per unit.

“The introduction of the night tariffs will help promote commercial and industrial growth in Kenya while maximising on the surplus energy available at off-peak hours,” said ERC acting director-general Pavel Oimeke. Read more on Uganda's refinancing of Bujagali hydropower plant to determine tariffs...

Media highlighted that commercial users who are metered between 450 volts to 11 kV will pay Sh7 ($0.067) per unit from Sh9.20 ($0.087).

The energy regulator expects industrialists to pass the benefits of lower costs on to consumers in the form of cheaper commodities.

The plan, which is reported to have been on the cards for a decade, was approved on Monday after ministry officials met Kenya Association of Manufacturers and Kenya Private Sector Alliance.

Examination of the night tariffs pilot

According to the Business Daily, earlier this year the regulator had appointed the German consultant, Lahmeyer International to conduct a study for the night tariffs scheme and the results left ERC in limbo.

The former ERC director of electricity Joseph Oketcht then said:  “The report indicated little benefits on the basis of discounts and load balancing. We are reluctant to implement it for now.”

 

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