Address the supply and demand sides in the proposed increase in electricity costs

Proposals to increase electricity costs should be handled in two main ways: One is need for the utility companies to remain profitable to keep providing electricity to drive the economy; and two the desire for affordable electricity supply to Kenyans. The World Bank in a study carried out in 39 countries under the theme “Making power affordable for Africa and viable for its utilities”, highlighted ways to make power and energy utilities profitable and factors necessary to ensure affordability of electricity. The study found out that one in every three Africans do not have access to electricity, which means they resort to use of kerosene or spend many hours in the dark, though Kenya has the highest access to electricity in East African region at 75 percent of the population. On the other hand, power utilities are cash strapped and are using aging energy infrastructure meaning they are unable to serve their customers efficiently. There is need to address this challenge because failure to which more Africans will be without access to electricity by the year 2030, though Kenya is on course to attain 100 percent access to clean energy by the year 2030.

Several steps are needed to address the twin challenges of financial viability of utility companies and also the need to ensure electricity affordability for Kenyans. One utility companies must minimize the inherent technical and commercial power system losses due to activities such as meter tampering. Secondly, the electricity generating companies must ensure maximum collection of electricity bills in an effective manner that incentivizes even the consumers. Thirdly, it is noted that increasing electricity tariffs as is the proposal now is necessary but should target large- and medium-size consumers while incentivizing them to consume more. These are likely to be industry and other manufacturing entities that have the capacity to consume more. There is a strong correlation between electricity consumption and incomes and hence development in a country, there cannot be a low electricity consumption and high-income country. There is therefore need to stimulate and encourage more energy consumption in order to develop the economy. Fourthly, mini- and off grid electricity connection from solar and wind should be boosted, in addition to utilization of the plenteous geothermal energy potential in Kenya. Increased use of clean energy has the capacity to lower the electricity production costs and hence lower tariffs for Kenyans. Dr. Mutegi Giti, Urban management, Public Private Partnerships (PPPs) & Environment Specialist. mutegigiti@gmail.com, @danielgiti.