Kenya Power Earns Kshs 4 Billion

Did you know that you pay for the Electrical leakage in your power bills? The leakages or losses are the differences from what the utility company buys from the producers to the actual units sold to consumers. Kenya power factors this, including theft, in the tarrifs charged to consumers. Business Daily Africa reports that the power losses have dropped to 11.9%  in May from 19.2% in a similar period last year. This has translated to Kshs 4 billion in earnings for the utility company.

Overhead Power Line

Power losses rate allowed is 15.9% with below rates translating to efficiency earnings by the company. The company absorbs cash loses should the rates be any higher with records indicate that one percentage point in system losses is equivalent to electricity sales of Sh1 billion. Thus, the company has earned kshs 4 billion as a result of the drop in losses by 4%.

The utility company is now targeting to cut more losses by installing more efficient transformers and shortening the lengths of power transmission lines.