Page 9 - AfrElec Week 50 2021

AfrElec PRICING AfrElec

Kenya’s cost of electricity to drop

by 15% before end of 2021

KENYA KENYAN consumers will soon see a 30% reduc- agreements (PPAs) with independent power
tion in electricity costs, President Uhuru Ken- producers (IPPS).
yatta announced during his Jamhuri Day speech The KPLC had signed PPAs with IPPs
on Sunday (December 12), the anniversary of denominated in the foreign currencies, increas-
the date that Kenya became a republic. ing the liability of the Nairobi-listed firm as the
“I am pleased to announce to the nation that shilling steadily depreciates.
the reduction in the cost of electricty will be In October, the Kenyan president directed the
implemented in two tranches of 15% each, with Ministry of Energy to fast-track implementation
the first 15% achieved through initial actions of recommendations of Presidential Taskforce
focusing on system and commercial losses, and on PPAs to bring costs down.
this will be reflected in people’s bills in December “I urge the power producers to demonstrate
of this year,” he said. goodwill as we seek to make our energy sector
Power consumers will immediately save a greater catalyst of our national development,”
KES3 ($0.03) per unit from the current rate and Kenyatta said in his speech on Jamhuri Day, a
ultimately save KES7 per unit when a further national holiday.
reduction is implemented by end of March 2022. Kenya’s electricity distribution utility is strug-
Kenyatta said the savings would be effected gling to offset loses due to having made U.S.
by state-owned Kenya Power and Lighting dollar and Euro denominated power purchase
Company (KPLC) in part by cancelling or agreements (PPAs) as the shilling steadily depre-
renegotiating disadvantageous power purchase ciates against major currencies. ™

Sasol sees drop in production

amid coal shortage

SOUTH AFRICA SOUTH African petrochemicals giant Sasol has “Collectively, these incidents contributed to
announced a significant drop in its production just over 50% of the coal production shortfall,”
at its Secunda operations in Mpumalanga, as a Sasol said in a statement.
result of a significant coal supply shortfall. Coal operations were also negatively affected
In an investment note to its shareholders this by adverse weather conditions, operational chal-
week it announced a downward revision to its lenges and a slower-than-expected ramp-up to
2022 production forecast. Sasol is a major pro- full calendar operations, while external coal sup-
ducer of synthetic fuels in South Africa with ply had been interrupted by wet weather.
the use of its world-leading coal-to-liquids The reduced coal availability and coal qual-
technology. ity had led Sasol to reduce its production rates
Sasol said its forecast production volumes at Secunda until mining productivity rates had
for Secunda for the 2022 financial year had been risen and stockpiles rebuilt.
revised to between 6.7 and 6.8mn tonnes, signif- “We recognise that our production challenges
icantly down from an earlier October forecast of may impact on our ability to supply customers.
between 7.3 and 7.4mn tonnes, which was itself “We are currently reviewing multiple options
a downward revision from an initial forecast of including different sources of supply to supple-
7.4mn to 7.5mn tonnes. ment our production shortfall where feasible,”
Sasol reported that there had been three Sasol stated.
major production impacts at its mining unit The company said it would provide a produc-
since the end of October, which had resulted in tion and sales update in January. ™
more than 1mn tonnes of lost coal production.

Week 50 16•December•2021 www. NEWSBASE .com P9