The Lower Eastern Times Opening The Third Eye
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Electricity losses at Kenya Power have surpassed the threshold set by the Energy and Petroleum Regulatory Authority (EPRA), highlighting ongoing challenges faced by the utility company.
The elevated losses, attributed to illegal connections and inefficiencies in transmission systems, are anticipated to impact the company’s revenue stream significantly.
Recent data reveals that Kenya Power recorded a 25% loss in December of the previous year, with a six-month average of 23.2% throughout the latter half of 2023, surpassing its target of reducing losses to 20.93%.
EPRA permits Kenya Power to transfer 18.5% of these losses to consumers, resulting in substantial financial implications annually.
Kenya Power’s CEO, Dr. Eng. Joseph Siror, specified that transmission losses amount to approximately 4.5% to 5%, with the remaining balance attributed to distribution and commercial factors.
Technical losses stem from deficiencies in the distribution infrastructure, while commercial losses result from power theft. Efforts are underway to mitigate these losses, with a focus on enhancing system efficiency.
Stephen Vikiru, Kenya Power’s General Manager of Finance, acknowledged the complexity of the issue, emphasizing targeted interventions to address high-loss areas.
These challenges coincide with EPRA’s decision to raise retail tariffs by around 20%, aiming to bolster Kenya Power’s revenue for essential infrastructure upgrades.
