Kenya Power is forced to source more electricity from Independent Power Producers (IPP’S) that mainly rely on diesel powered thermal turbines.
The electricity retailer normally buys electricity from the IPP’s at an average wholesale price of Sh19.24 ($0.19) per unit, with cost passed to consumers.
The diesel rate is six times more expensive than hydro-power (Sh3 per unit) and three times higher than geothermal energy (Sh8).
Recent data from EPRA shows that fuel levy — which is influenced by the share of electricity from diesel generators —rose to Sh3.75 per kilowatt hour (kWh), up from Sh2.75 set in March.
Full article: The Star