Kenya’s Energy Ministry to set up power fund
Kenya’s Energy of Ministry has announced plans to launch a fund that aims to stabilise the cost of power across the country.
The fun is expected to be set up by June this year, and will target energy prices, making them more predictable and steady.
The fund will work through regulators enabling consumers to reap the benefits of low priced hydropower during appropriate weather conditions, whilst rising the fuel levy during drier times, or when hydroplants are under construction.
“We are awaiting the heavy rains from April through June to set up the power stabilisation instrument,” confirmed Joseph Njoroge, the Energy Principle Secretary of Kenya.
“The fund should make it easier for consumers to predict their power costs,” he added.
Kenya has recently suffered from higher fuel prices due to droughts effecting hydropower and therefor having to rely on diesel-generated power.
“If there is a drop in fuel cost obligations by say Sh3 per unit due to increased hydropower, we will lower fuel cost charge in power bills by Sh1.50 instead of the whole Sh3 with the other half going to the fund,” Njoroge stated.