Page 12 - AfrElec Week 04 2023

AfrElec TARIFF AfrElec

Kenya Power lost $17.5mn in tariff discount

as state firms don’t lower charges

KENYA STATE-OWNED utility Kenya Power (KPLC) “KPLC implemented the tariff reduction
lost KES2.1bn ($17.5mn) in implementing a from January 2022 but the other agencies did not
15% tariff reduction last year because other state- implement the cost reduction measures as per
owned firms in the sector failed to lower their respective commitments which were estimated
charges as agreed with the government, Business to translate to KES 2.1bn,” the Auditor-General
Daily reports. report is quoted as saying. “Consequently, the
The tariff cut was implemented by the pre- company did not realise full revenue support
vious government to offer relief to consumers occasioned by the 15% tariff reduction directive.”
amid rising inflation in the East African country. KenGen denied Kenya Power the largest dis-
According to a report by the Auditor-Gen- count of KES1.75bn in its billing, a separate audit
eral, however, Kenya Electricity Generation of the power producer’s accounts cited by Busi-
Company (KenGen), Kenya Electricity Trans- ness Daily shows.
mission Company Limited (Ketraco) and the The government had allocated KES7bn
Geothermal Development Company Limited towards the tariff reduction to the electricity
(GDC) all failed to comply with the mandated distributor to support the initiative which was
cuts. designed to offer financial relief to consumers. ™

INVESTMENT

Chinese project to link $1.5bn iron ore mine,

steelworks to Zimbabwe power grid

ZIMBABWE ZIMBABWE’S power utility and a Chinese DISCO is owned by China’s largest stainless
investor have completed geological works and producer, Tsingshan Holdings Group Limited.
are 80% through the design of substations within Its $1.5bn mine and steel project is now 50%
a project to connect an under-construction iron complete, according to The Herald. Its first
ore mine and steelworks to the national grid. phase, to produce 1.2mn tonnes of steel per year,
State-owned daily The Herald on Monday is expected online by August 2023.
(January 23) quoted a senior official at power ZESA and DISCO entered into a public-pri-
utility ZESA Holdings (ZESA) saying talks with vate partnership in May 2022 under which the
the Dinson Iron and Steel Company (DISCO) former will build a 100km high voltage, 330KV
are now focused on financing the project in cen- power line and two 175 MVA substations from
tral Zimbabwe. a major sub-station in Kwekwe city to the
“The construction of the high voltage power steel works at Manhize. DISCO will provide a
lines and substations is now at an advanced stage $750mn loan to ZESA for the power project,
and the two partners (ZESA and DISCO) just according to the agreement.
witnessed 100% completion of the geological The Manhize plant is expected to reduce
works,” ZESA general manager for stakeholder Zimbabwe’s steel imports by 90%. The southern
relations, communications and welfare George African nation currently spends about $400mn
Manyaya said. yearly on imports, mainly from neighbouring
“To date, design of the power lines and sub- South Africa.
stations is now 80% complete. Other works The national export promotion agency,
which include financing of the construction are ZimTrade, sees potential for the sale of DISCO’s
now at an advanced stage, with commencing of production to markets in Angola, Botswana,
construction works expected soon after financ- the Democratic Republic of Congo (DRC),
ing finalisation.” Namibia, Malawi, Mozambique and Zambia. ™

P12 www. NEWSBASE .com Week 04 26•January•2023