This is how transmission losses and corrupt employees keep your electricity bills high

Kenya’s transmission losses remain high compared to her peers on the continent. And at least two out of every ten units of electricity that Kenya Power buys from electricity producers for sale to its customers are lost before they reach their destination.

This is attributed to outright theft, at times facilitated by Kenya Power staff as well as a dilapidated transmission infrastructure. This plays part in pushing up the cost of power, as the firm passes these losses to customers.

As of December last year, power losses stood at 23 per cent. An expert in the industry estimates that one per cent of power losses translate to an additional cost of Sh1 billion, costs which are borne by the consumer.

However, about 15 per cent of these losses are shouldered by the consumer while the remaining eight per cent is written in Kenya Power’s books as losses.

According to Kenya Power annual reports, the power losses have been growing over the years from 16 per cent in 2009/10 financial year to 20.5 per cent in the year to June last year.

In its report for the half-year to December 2018, the firm said this had worsened to 22.8 per cent during the six months despite the massive investments to improve transmission and distribution.

“Over the past 10 years since 2009, total system losses - both technical and commercial - have gradually increased from 16 per cent to about 23 per cent with at least six per cent attributed to commercial losses,” said Hindpal Jabbal. “And every one per cent increase in losses is equivalent to about Sh1 billion losses in revenue to KPLC.” At 23 per cent, power loses in Kenya are double the sub-Saharan Africa averages and three times higher than the global average.

According to the World Bank, about eight per cent of the power produced globally is lost during transmission and distribution. This is slightly higher in sub-Saharan Africa at 12 per cent. Singapore, Trinidad and Tobago and the Slovak Republic have tamed their losses to two per cent.

Technical power losses could arise out of faulty or old transmission equipment.

Commercial losses are, however, due to theft by Kenya Power staff and customers through pilferages, faulty metres or metre tampering and illegal businesses that tap directly to power lines and “supply” users with the electricity.

The firm attributed the rising power losses to increased connections and expanded network.

“Over the last five years, the power distribution network has expanded considerably in tandem with the rapid pace of new electricity connections. In the same period, the circuit length for high and medium voltage power lines increased by 10 per cent while the customer base grew by an average of 24 per cent annually,” said the firm in its annual report for the year to June 2018.

“The extended network and growth in customer numbers have led to a consequent increase in system losses....” While Kenya Power can pass the losses to customers, there is a limit to how much it can recover, which the power industry regulator has capped at about 15 per cent, which is still higher compared to the global average at 11 per cent.