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AfrElec NEWS IN BRIEF AfrElec

TARIFFS TARIFFS unutilised energy.

Zimbabwe power utility Kenyan regulator reviews

seeks tariff increase to stay proposed 20% power tariff POLICY
afloat hike Tanzania vows to electrify

Zimbabwe power utility ZESA Holdings The Energy and Petroleum Regulatory all homes
wants to raise its electricity tariffs at least Authority (EPRA) now says it is reviewing the
three-fold, saying the current tariffs are now Kenya Power tariff application formula which The Tanzanian government has reiterated its
sub-economic. will inform new adjustments in electricity commitment to ensure all homes are provided
The utility last increased tariffs in February billing in the country. with electricity in line with its efforts to drive
by 19 percent. This follows a proposal by Kenya Power power into every village across the country.
Acting managing director for the utility’s to revise electricity tariffs upwards by at least Deputy Minister for Energy Ms Subira
subsidiary, the Zimbabwe Electricity 20 per cent, to help cover costly wholesale Mgalu issued the assurance over the weekend,
Transmission and Distribution Company electricity purchases from generators such while switching on the power in some villages
(ZETDC), Lovemore Chinaka, on Thursday as KenGen, and maintenance of the national and public institutions in Mpwapwa and
told the Parliamentary Portfolio Committee grid. Kilosa districts in Dodoma and Morogoro
on Energy and Power Development that The utility firm has blamed an increase in regions respectively.
a tariff increase would enable the firm to non-fuel power purchase costs for its recent According to the deputy minister, the first
maintain the grid, the Herald newspaper 91.9 per cent drop in profit, where in the year challenge was to supply electricity into villages
reported Friday. ended June 30, 2019, net earnings fell to Sh262 in which the government has performed
He said the existing rate, approximately 2.3 million from Sh3.3 billion the previous year. beyond targets.
U.S. cents per kilowatt-hour (kWh), is way The costs went up by Sh18.1 billion to “After this exercise, our teams from the
lower than the 10 U.S. cents per kWh that Sh70.9 billion, from Sh52.8 billion in a similar Tanzania Electric Supply Company and the
would allow the power utility to break even. period in 2018, it notes in its audited financial Rural Energy Agency will have to ensure every
“The long-term impact would be that results. suburb and every home is connected at a fixed
we will be unable to fix the grid from a Kenya Power made an application for a rate of 27,000/-,” she announced.
maintenance point if we have natural failures review of tariffs last year, opening talks with The Deputy Minister said the first round
of transformers or lines that are down due to the regulator. of REA phase three comes to an end and
age,” Chinaka said. “You find that our capacity Though it is not clear when the process the government has already identified new
to respond quickly has been eroded.” will be completed, EPRA said it will engage contractors to implement the second round
He also said that the power utility stakeholders before coming up with a of REA phase three, adding: “We expect
has failed to supply electricity to 75,000 conclusive decision. to apportion locations for new contractors
households in the past five years due to “The authority is currently reviewing the between August 20 and September 20, this
rampant vandalism and thefts of distribution Kenya Power tariff application and as required year,” she added.
equipment. by the Constitution, EPRA will engage Official records from the ministry indicate
In 2017, ZESA recorded 736 cases of thefts stakeholders before making the final decision,” that 851bn/- has been allocated for the
and vandalism. The number of such cases rose acting Director General Mueni Mutung’a told purpose and an additional 179bn/- will be
to 766 in 2018 and 1,178 in 2019. As of July the Star. spent on connecting peri-urban areas in 16
this year, 498 cases had been recorded. Kenya Power has the blessings of the regions including Dodoma to the important
Energy ministry to boots its revenue stream source of power.
to cushion it from costly power purchase However, Ms Mgalu was concerned that
agreements, which has seen it pay for some homes have not seen the essence of
connecting to the power grid, and hence,
urged the communities and utility authorities
to engage with the people to help raise
awareness on the benefit of the electricity
service at their homes.

COAL

Tlou Energy makes progress
with transmission line

plans

Tlou Energy has engaged Mott MacDonald

P12 www. NEWSBASE .com Week 37 17•September•2020