Home > Electricity > Kenya Power Needs To Be Penalized For Blackouts

Kenya Power Needs To Be Penalized For Blackouts

The rainy season in Kenya is synonymous with prolonged and frequent power outages. As I write this, I am seeing very many tweets from people complaining of going three days in a row without power in their homes. Kenya Power seems overwhelmed in ensuring reliable supply of power to many of its customers. There have been calls to end the Kenya power monopoly by licensing other independent power utility companies to compete with Kenya Power. I have even discussed how this monopoly can end in a previous blog post here.

One thing worth noting however, the Kenyan situation is fairly better compared to the situation in Nigeria or Angola. For example, in Lagos, power is available only about 35% of the time and people have to depend on private generator sets to cover for the deficiency. in Nigeria fuel is 1/3 times cheaper than here in Kenya and the use of personal gen-sets in Kenya is therefore an expensive affair.

I have also discussed on a previous post on how the introduction of a Demand Response Provider can help lower the level of investment in power generation systems in the country by eliminating or leveling off the peak power demand curve. I would like to revisit the issue of the use of demand response providers but from a slightly different angle.

Negawatts

As opposed to Megawatts which is a measure of quantity of power consumed, Negawatts measures the quantity of power NOT consumed (in essence negative watts). Assume your house consumes about 10 Kwh power day like mine. If for some reason there is no power supply to my house for a day then my Negawatt consumption is equal to the power I have not consumed = 10. At the current tariff, a Kwh is about 18 shillings bringing my total daily power consumption to 180 shillings.

So if we price Negawatts at a rate of 25 shillings, then if there is a blackout in my house for a day then the cost of Negawatts “consumed” is 250 shillings. This will be the amount the utility provider owes me for not consuming power (either though my own deliberate action or by a provider caused blackout).

This therefore means me not consuming power costs Kenya Power more than if I consume power. What will happen is that this Negawatt tariff will essentially be a penalty of sorts to the Kenya power management and staff for not providing me with power, the Negawatt cost will come from their profits and bonuses. There is no reason why Kenya power should declare a 6.2Billion Shilling profit in the wake of very unhappy customers, some of these profits should be used to pay off aggrieved customers who have lost business and comfort due to their inefficiency.
This therefore means Kenya power will get penalized by their consumers by the hour for blackouts caused at a rate higher than if they would have supplied electricity to these consumers.

At the rate of 18 shillings per Kwh, my monthly bill of power consumption will be approximately 180 x 30 = 5400 shillings, assuming i experience blackout totaling to 10 days, then my power bill becomes without Negawatts penalty is  (180 x 20) =3600. However, with Negawatts penalty it becomes (180 x 20) -(250 x 10) = 1100 Shillings. So Kenya Power gets penalized 2500 shillings for the loss suffered by my business or home due to lack of power which i am now so dependent on.

This set-up will spur Kenya power to improve on their response times, invest in more robust distribution networks and increase staff output as they all work towards now losing money due to inefficiency.

At the end of the day, the customer will enjoy better power supply and Kenya power will not lose money due to Negawatt payouts to consumers.

About these ads
  1. April 25, 2012 at 11:22 am

    This is the same case in most areas like Uganda where customers are even charged for what they have not consumed. Also same in Tanzania where one player (TANESCO) is in charge of power. I Think its because there is no competition within the power sector in East Africa because if there was, they would try to be effective. As for now, they know we have no option but stick to their blackouts and charge customers in Negawatts. Thanks for this story but its the same else where.

  2. April 26, 2012 at 9:05 am

    Kenya Power needs an overhaul…..this will spur them…!! Hit them hard where it hurts…!!

  3. Paloma
    April 26, 2012 at 11:46 am

    I really enjoyed reading what you write Tom. Well done.

    • April 26, 2012 at 12:01 pm

      Thank you Paloma for your positive comments. Keep visiting the blog for more.

  4. May 1, 2012 at 5:15 pm

    What an informative article! If only KP would be as efficient as…
    I’ve added one term to my vocabulary; negawatts..

  5. murage
    May 2, 2012 at 7:07 pm

    It is so sad that we are still suffering from power black outs even though it seems that their excuses do not hold any water, even after the rains

  6. Irene Ndunge
    May 23, 2012 at 5:17 pm

    Hi
    I appreciate your blog, always on the spot! Ironic how the dams are overflowing yet blackouts won’t stop, tariffs won’t change & the fuel costs will not be adjusted in our electricity bills..

    I’m doing my research on dynamic pricing & demand response.. wanted to base it on Kenyan system but I can’t access the 57 bus model or anything close! The bulk tariff too… it’s not clear how the marginal costing is done.

    Kenyans need answers
    Good work

  7. Muiruri
    May 25, 2012 at 6:54 pm

    Very insightful piece…I believe competition in distribution is the only way to curb the menace. Thereby a firm like Kenya Power stands to lose if it cannot supply(i.e customers would migrate to a different supplier)

  1. November 8, 2012 at 10:22 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 85 other followers

%d bloggers like this: