Cofek calls for 20% cut in electricity prices for domestic users

11
Cofek calls for 20% cut in electricity prices for domestic users
Cofek calls for 20% cut in electricity prices for domestic users

Africa-Press – Kenya. The Consumers Federation of Kenya has called for a 20 per cent cut in electricity prices for domestic users. In a statement on Thursday, Cofek secretary-general Stephen Mutoro said the Federation takes great exception to Kenya Power’s plan to hike electricity tariffs.

“It doesn’t make sense that Kenya Power seeks an increase in tariffs every time. Yet, with the increasing use of technology, and the use of renewables on the grid, the cost of power should be going down,” Mutoro said.

“Most of the new capacity being added to the grid is from renewables – geothermal, wind, solar, biomass. As such, there is no justification for higher tariffs.”

Mutoro said that Cofek rejects the proposed electricity tariffs which will overburden Kenyans. He said the utility’s high costs are partly blamed on a dilapidated network, lack of meters, and a general state of slothfulness at Kenya Power.

Mutoro said that renegotiating Power purchases (PPAs) with privately owned producers selling power to Kenya Power at exorbitant costs is also a priority if Kenya is to cut electricity tariffs.

He added that the Auditor General has established that power from KenGen is bought at an average of Sh3 per Kw/h. He said the cost of power from privately-owned generators is more than four times the price of KenGen.

“The planned closure of thermal plants whose PPAs have expired must continue without fear or favour. We, therefore, ask for the immediate shutdown of the Kipevu 1 thermal power plant whose PPA has expired,” he said.

He added that EPRA must not proceed to subject the Kenya Power request to public participation without disclosure of technical and commercial losses. He said that the lifeline band for poor households should be retained at 100 units per month. Cofek said they deem the 30 kwh cut-off as too low and will lock out many poor households.

“The step-up principle should be reinstated in billing, where a household using 130 units a month should pay the first 100 units at lifeline cost, then the remaining 30 at the graduated tariff for those consuming more than the lifeline limit of 100 kWh per month,” Mutoro said.

Cofek said that they demand the immediate cessation of using 3 monthly average to classify consumers, where those whose consumption goes above 100 units are permanently shifted to a higher tariff. He called on EPRA and the Ministry of Energy to stay true to serving the interests of Kenyans and not the whims of selfish IPPs.

For More News And Analysis About Kenya Follow Africa-Press

LEAVE A REPLY

Please enter your comment!
Please enter your name here