– The lighting company in its annual report said about 54.8 % of revenue from the industrial users was on the downward trend
– The company generated KSh 63 billion from industrial customers which accounted for 45 % of its total revenue
– Africa Logistics Properties and Mombasa International Airport are among customers who commissioned own-generated solar energy
Kenya Power is alarmed by the reduction of power consumption among its key industrial customers opting for much cheaper energy.
Kenya Power boss Benard Ngugi. The company is losing key customers. Photo: KPLC.
Source: Facebook
The power distributor in its annual report said about 54.8 % of revenue from the industrial users was on the downward trend as they shift to solar energy.
The Business Daily reported that the company generated KSh 63 billion from industrial customers which accounted for 45% of its total revenue. Firms with own solar plants
The demand growth for the year under review stagnated at 3.7% way below the 5% which the company had projected in the previous financial year. “The dampened demand growth is further compounded with the increased threats of grid defection by the industrial category as decentralised renewable energy options are becoming more available and cheaper," it stated. Some of the former power consumers who have since installed own-generated solar energy are Africa Logistics Properties, Mombasa International Airport and the International Centre of Insect Physiology and Ecology (ICIPE).
The ICIPE commissioned solar power plants in Nairobi and parts of Mbita where it is domiciled.
Other firms which have opted for solar enegry are London Distillers Limited, Garden City Mall, Kenyatta University , Strathmore University and Kapa Oil Refineries among other big power consumers.
In July, Kenya Power Managing Director Bernard Ngugi said talks with the regulator were underway to increase electricity bills per unit by 20% to turn around its dwindling revenue stream. Kenya Power’s huge debt Ngugi revealed the company was reeling under a huge debt that could potentially stall its operations. "We have outstanding debts that we need to pay, we also took huge loans. The much we are collecting which require us to do certain things demand quite a lot. We are required to do something very strategic," he stated. The MD further said the increment will also cater for the cost of power generation adding that Kenya Power usually pays about 70% of its revenue to Kenya Electricity Generating Company (KenGen). […]
