Electricity connection charges to remain at the current rates

The cost of connection to the electricity network will not go up beyond the current price even after the two-month grace period given by the government expires, Energy Cabinet Secretary Davis Chirchir has said.

Mr Chirchir told the National Assembly’s Energy Committee that new connections for the single and three-phase electricity supply are not likely to rise above the current Sh34,980 and Sh49,080 respectively.

The Cabinet was in August directed to compel Kenya Power to revert to the Sh34,980 that is charged most domestic customers for connection to the grid. The firm had increased the fee to Sh70,000.

“We don’t see the cost going up because the political side of the story is, and we have been asked that before, that if the cost didn’t go up in the last 10 years, why increase it when a new government has just come in?” he said.

Kenya Power has kept the connection rates constant since 2004 and had said Sh70,000 reflects the actual increases in costs and labour needed for new connections over the 10-year period.

At the meeting on Tuesday, Mr Chirchir said a study is being done to establish the realistic cost of materials used to make new connections. He said one of the apparent discrepancies is in the price of electricity poles, which Kenya Power places at between Sh16,000 and Sh19,000, yet fresh untreated poles costs Sh3,000.

“Is it true that when I sell my pole at Sh3,000, by the time I transport and treat it the cost should move to Sh16,000? We’ve Kenya Power to explain these things because (better) procurement processes can bring the cost down,” he said.

MIDDLEMEN

Mr Chirchir said some of the high costs could be because middlemen are involved and could be taking a huge cut of the earnings.

“We’re auditing very critically and the cause of concern is the cost of materials. You’ll see people (read suppliers) complaining but if you say you are doing business you must do it reasonably,” he added.

Mr Chirchir said the government aims, through the Rural Electrification Authority, to have electricity connections at market centres and schools, which would in turn make it easier for homes to connect.

In his on-going meetings with World Bank officials in the US, Treasury Cabinet Secretary Henry Rotich is negotiating for a loan to finance REA’s expansion of the national grid. MPs however said even the subsidised rate is still beyond the reach of many of their constituents.

“We see the wires in the village during the day and think the connections have been made but there is no light at night. They say the cost is too high,” said Suna East MP Junet Mohammed.