Electricity distributor Kenya Power has lost approximately KSh 5.6 billion in revenues between March and June, citing low power consumption due to the pandemic. The news only comes a month after the company issued a profit warning, saying that the pandemic has interfered with electricity sales.
READ ALSO: Kenya Power Issues Profit Warning over Low Growth in Electricity Sales
“Between March and June 2020, electricity consumption declined by about 14.8 percent corresponding to a decrease in energy consumption by about 341 GWh. Consequently, electricity sales revenue reduced by about KSh5.6 billion,” Business Daily quoted CS Keter.
Lockdown Boosting Domestic Demand for Kenya Power
Stay at home orders increased electricity consumption by households by about 5%. However, households only account for 10% of the company’s revenues, which largely comes from heavy commercial consumers. Kenya’s power has 6 million domestic customers, who consume less than 100 units of electricity a month.
In the months of March to June, we witnessed an increase in electricity consumption of five percent of domestic customers constituting six million. This in terms of revenue is about less than 10 percent. About 90 percent of Kenya Power revenue is from one million customers who are heavy commercial and SMEs
CS Charles Keter
Last year, the company made a bid to increase the cost of electricity in an effort to earn more from domestic customers. Kenya Power wanted to increase charges for consumers using less than 100kWh per month to KSh 12.5 per unit up from KSh 10. The company also proposed to raise charges for customers who use less than 200 units a month to KSh 19.53 per unit, increasing the cost of electricity by KSh 3.73.