How we plan to lower electricity bills: Charles Keter

Energy Cabinet Secretary Charles Keter. Kenya has a rich mix of power, which does not rely on thermals. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The commissioning of the Lake Turkana Wind Power (LTWP) will bring an additional 310MW while the Garissa Solar Project will provide 50MW this year.
  • The Energy ministry has installed either grid electricity or solar in almost all primary schools in the country to facilitate digital literacy programme.
  • Kenya Power is implementing a programme to absorb employees on contract into permanent and pensionable terms.

In this interactive series, we invite readers to send in questions to selected public figures. This week, Energy Cabinet Secretary Charles Keter responds to your questions.

1. I run a small renewable energy company here in Kenya. As a sector, we have given numerous proposals to your ministry on ways we can lower power bills by supplying power at a rate half of what you are currently getting from other sources, one of the proposal is net metering. Your ministry seems uninterested in anything that lowers power bills to the customer in what appears to be a well-calculated move to protect cartels which generate diesel power at exorbitant rates to Kenyans. Why is this so? David Maranga, Lang'ata

We are reviewing the current programme to determine what has worked and what has not worked so that we can transition into a more transparent and competitive regime.

I am happy to tell Kenyans that we now have a rich mix of power, which does not rely on thermals.

For example, in the August 2018 dispatch, geothermal provided 43.7 percent, hydro 42.8 percent, thermal 12 percent (down from 24 percent in September 2017), wind 0.3 percent and net imports 1.2 percent comprising of 50MW of hydro-power from Uganda.

The commissioning of the Lake Turkana Wind Power (LTWP) will bring an additional 310MW while the Garissa Solar Project will provide 50MW this year.

This will provide an increase in the dispatch of wind and solar into the national grid.

By August 2019, Kengen will bring into the national grid an additional 160MW of geothermal power.

In 2019, Kenya will also receive 400MW of hydro-power from Ethiopia. This comes to a total of 920MW in one year.

With regard to net metering, it has been provided for in the Energy Bill, 2017 that is currently before Parliament for debate.

2. There is a big difference in electricity charges in pre-paid and post-paid tariffs. What has your ministry done to cushion consumers from being exploited by Kenya Power in the prepaid tariff? Zephaniah Obaga, Gilgil-Nakuru County

All customers are billed on the same tariff whether they are using pre-paid and post-paid meters.

With effect from August 1, all fixed charges and stepped consumption rates in the bill were removed.

There is no difference in charges for prepaid and post-paid billing. Any purchases within the billing period will therefore be charged for the power consumed.

3. What effects will the introduction of taxes on fuel have on electricity charges and how are you planning to counter them? Zephaniah Obaga, Gilgil-Nakuru County

The fuel cost charge billed to customers already attracts 16 percent VAT, therefore there will be no effect on the electricity bills to our customers.

Additionally, the Lake Turkana Wind Power will inject additional renewable energy in the grid to reduce the amount of thermal component in the energy mix. This will mitigate any additional cost of fuel.

4. Every time I hear the energy issue being discussed, there is one thing that always comes to my mind: when will the country be self-sufficient on the issue in electricity supply? Francis Njuguna, Kibichoi

We are currently focusing on the completion of the additional transmission lines into western Kenya that will alleviate this situation by evacuating more geothermal power from Olkaria into this region.

The completion of these transmission lines, Narok-Bomet and Olkaria-Lessos-Kisumu, will go a long way in stabilising power in Western Kenya.

Under the framework of the Eastern Africa Power Pool, power trade among East African countries is encouraged.

In August 2018, Kenya on average imported 50MW of power from Uganda to help in stabilising power supply in western Kenya as need arose.

5. Sir, you made some strong remarks after the DPP arrested almost the entire top management of Kenya Power. In light of your remarks at the time, do you think the renewed war on corruption is being fought with sincerity? Purity Wavinya, Makueni

Yes, totally.

6. When will all Kenyans who are within 600 metres from the transformer start getting power to their homes at the reduced charges of Sh15,000? Kenya Power office in Murang’a claims that only the people who require one pole will pay the Sh15,000. Those who require more than one poles are supposed to pay the full cost even if they are within the 600 metres. Stephen Chege, Kangema

Under the Last Mile Connectivity Programme, a number of transformers have been earmarked for maximisation where homes within 600m radius are connected at a cost of Sh15,000.

Your case has been taken up by the Kenya Power team and I am sure that they will revert to you on this.

You can get in touch with the KPLC customer care team on 95551 for any specific issues you may have on power connection and billing.

7. No sooner had the country started trucking oil than pump prices shot up exponentially courtesy of ERC’s convoluted price determination mechanism that benefits the marketers and the 16 percent VAT. How is your ministry going to shield us from this exploitation? Solomon Gatobu, Maua

This question would best be referred to and addressed by my colleague in the Ministry of Petroleum and Mining.

8. The last mile connectivity programme was witnessed in other areas of the country but are you aware that in Chepalungu sub-county, Sigor in particular, the people here have only heard of the programme and not experienced it? Electricity poles were delivered by a contractor but nothing has been done up to now. Jeff Chepkwony, Sigor Chepalungu

The Last Mile Project is being implemented in phases and is ongoing across the country. It targets to connect homes within 600 meters of earmarked transformers for each phase.

The most recent Last Mile project that was being done in Sigor is Uswet Sachoran Village; being implemented by the Rural Electrification Authority (REA) and is benefiting 43 households from an existing transformer.

The list of targeted customers has been forwarded to Kenya Power to arrange for the final connection, by installing a pre-paid meter at the top of the terminal of every house.

9. Parastatals in your docket including Kenya Power and Kenya Pipeline have been accused of runaway corruption ranging from faulty transformers, cartels controlling the energy sector, favouritism in tender awards. What measures are being taken to address the negative perception that is emerging of your ministry? Jeff Chepkwony, Sigor Chepalungu

Kenya Power and Kenya Pipeline Company are governed by the constitution and the Public Service Ethics code.

Their procurement is guided by the Public Procurement and Disposals Act and any dispute regarding tenders is arbitrated by the Public Procurement Oversight Authority.

They are also subject to audits by the Auditor-General and the parastatal’s investigations agency.

The two cases you refer to are being handled by competent bodies and the courts which should be allowed to carry out their duty.

10. Your ministry has received lots of backlash for corruption allegations or wanting service delivery. Sir, despite all this, are there milestones you have made since you came into the ministry which are being overlooked by your critics? Komen Moris, Eldoret

The ministry has facilitated additional generated power by more than 680MW in the last four years.

This has pre-empted any possibility of rationing even during times of low hydrology and also reduced the unit cost of power by displacing the use of thermal plants as most of the new generation is geothermal renewable energy.

We have installed either grid electricity or solar in almost all primary schools in the country to facilitate digital literacy programme.

Many other public facilities such as secondary schools, health centres, hospitals and boreholes have benefited from electricity connections.

The ministry significantly reduced the connection fees under the Last Mile Project to domestic households and small and medium enterprises from Sh35,000 to Sh15,000.

In addition, the Ministry is a key enabler of the Big Four Agenda. The Ministry has commenced installation of electricity to the various existing health centres and dispensaries.

11. Much has been canvassed about the Turkana Wind power and its evacuation to the National Grid. The issue of Sh1 billion penalty per month by the investors has also been in the public domain for some time now. Sir, what are the true facts about this important investment? Komen Moris, Eldoret

As per August 31, 2018, the transmission for the Lake Turkana Wind Power is complete with sufficient capacity to evacuate the power.

Commissioning tests are ongoing and we expect to complete the tests by mid-September.

12. Ministry of Energy seems to be condoning nepotism given the ethnic backgrounds of CEOs, senior managers and general staff complement at the energy parastatals. What actions are you taking in ensuring this is stopped forthwith and fair ethnic balance observed? Gerald Mutua Mutiso, Makueni

The recruitment of staff at the Ministry and across its parastatals is very transparent as it is guided by existing Laws of Parliament - including the Employment Act of 2007 and its successor, the State Corporations Act Cap 446 (2012) and regulations issued by the Public Service Commission as established by Article 232 of the Constitution of Kenya.

The recruitment at all SAGAs is done at the Board of Directors’ level on a competitive system and based on merit, while at the Ministry level, the Public Service Commission advertises, interviews and recruits public servants.

In addressing issues about diversity and the face of Kenya at all government institutions, the Public Service Commission is charged with promoting the values and principles mentioned in Article 10 and 232 of the Constitution of Kenya.

13. What is your take on the plight of employees who have been on renewable contracts at the Kenya Power for years, some for as many as 10 years? Wycliffe Obura

Kenya Power is implementing a programme to absorb employees on contract into permanent and pensionable terms.

Early this year, a total of 700 staff were converted from contract to permanent terms.

14. You are in-charge of a very influential docket that oversees a number of energy agencies. I have checked and discovered that just a few Kenyans understand the distinct mandate of each of these agencies. What can you do to correct this? Dan Murugu, Nakuru

We are preparing a documentary to show the relationship between parastatals under the Ministry.

Our parastatals are strongly interrelated, with each feeding into the other.

KenGen, Geothermal Development Company and Kenya Nuclear Electricity Board are involved in generation of power.

Kenya Power and Lighting Company and Rural Electrification Authority distribute power while the Kenya Electricity Transmission Company constructs transmission lines.