Kenya to cut power tariffs for large businesses that operate overnight

From 1 December, Kenya will cut its power tariffs by up to a third for large businesses and manufacturers that operate in late hours.

According to the Energy Regulatory Commission (ERC), tariffs will be discounted for operations running between the hours of 10pm and 6am for commercial and industrial power users.

This is the time that demand is at its lowest, with most business and household using little to no electricity.

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Energy above 11kilovolts (kV) supplied by Kenya Power for commercial consumers will decrease in price from Sh7.50kWh (US$0.07) to Sh5 ($0.05) per unit.

For commercial users who are metered between 450 volts and 11 kilovolts, their tariff will be dropped from Sh9.20 ($0.09) to Sh7 ($0.07) per unit.

The energy regulator anticipates that by lowering the cost for consumers, that industrialists will pass this on to lower costs of commodities.

“The introduction of the night tariffs will help promote commercial and industrial growth in Kenya while maximising on the surplus energy available at off-peak hours,” stated Pavel Oimeke, Acting Director-General of ERC.