Investors at an upcoming industrial park in Naivasha will be offered cheaper power tariffs.
The move, the Energy Regulatory Commission (ERC) said yesterday, is expected to attract companies to the park that is planned next to power producer KenGen’s Olkaria geothermal fields. ERC Director-General Pavel Oimeke said in Nairobi the tariff will be substantially lower than what manufacturers and other large power consumers are charged currently.
Proximity to KenGen’s geothermal power plants is expected to increase stability and reliability of electricity to consumers’ premises.
"We are working on a special tariff for the industrial park at Naivasha which will be much lower than the tariffs that we currently have in place,” said Mr Oimeke when ERC presented a certificate to Hilton Hotel for fully complying with the provisions of the Solar Water Heating Regulations, 2012.
He, however, said the plan would not affect KenGen and Kenya Power as the two would continue playing their separate roles of producing and distributing power. This is despite expectations that KenGen would supply power directly to the firms that set up at the park.
Mr Oimeke said the regulator was keen on players in the sector remaining ‘unbundled’ as opposed to the situation in the past where one company played all the roles in the value chain from generation to distribution and retailing of electricity.