Industrial consumers yet to get cheap power

Commercial Director Pwani oil product, Rajul Malde [left] and sales lady, Blassing Emmah display salit cooking oil at Nyali Beach resort in Mombasa. Salit cooking oil which has been in the market for 50 years is re launch to give it a new face. 16th May 2017 [Photo: Omondi Onyango/Standard]

The cost of power to large industrial consumers is yet to come down following the lack of clarity from the government’s initiative to cut costs by half.

Manufacturers say their bills have remained high despite the hype that the new power tariffs implemented in August would cut costs for large consumers. This is in addition to connections of lowly-priced wind power to the grid among other initiatives by agencies.

Edible oil producers Pwani Oil boss said the power reduction initiative remains a Government pronouncement without proper execution plan. The firm said other than the consumption charges, the cost of electricity bill variables will remain high even when the lower tariffs are implemented.

“We do not know exactly how it will be implemented. So when you look at the power bill, apart from the unit costs that Kenya Power charges, there are various other things in terms of forex charges, fuel cost charges and others, so what happens to those,” said Pwani Oil Director – Commercial Rajul Malde (pictured).

The State was hoping to plug in clean cheaper power from Lake Turkana Wind Power Station and the Garissa Solar power firm. The two have delayed supplies due to capacity challenges. Central Bank Governor Patrick Njoroge said the State expects the two plants to bring down electricity costs despite the tax hike on petroleum products.

However, the sector may gain from a 30 per cent deduction next year.