Energy Regulatory Commission offices. Photo/business daily
Kenya Power application for electricity tariff increase that would have seen consumers’ bills increase by Sh2.6 billion every month has been shot down by the energy sector regulator.This being the second time Kenya Power has sought to seek approval to raise charges the electricity distributor says a tariff increase is necessary to cover surging costs from increased customer connections and power leakages on its aging infrastructure.“At this point, there is nothing that justifies any power increment,” said ERC acting director-general Pavel Oimeke while confirming that Kenya Power had submitted an application for tariff review."While ruling out any increment, Mr Oimeke said that the utility firm should instead boost efficiency in its operations by slashing system losses to grow its bottom-line.However, Kenya Power says that the firm is incurring heavy costs through the accelerated construction of a wider distribution network and substations to connect more homes as part of the government’s plan to attain universal access to electricity by 2020.The Kenya Power managing director Ken Tarus says that the more expansive network has come with increased power leakages.The Sh43.5 billion Last Mile project is financed by loans from the African Development Bank and the World Bank, which will have to be repaid.It has helped grow the number of connections six fold to 6.2 million customers from one million in 2010.