Cost of power to go down despite VAT says PS

The Government says the cost of power is set to decrease despite the controversial 16% VAT on petroleum products.

Appearing before the Senate energy Committee Energy Principal Secretary Joseph Njoroge said the cost of power will drop owing to the completion of the Loiyangalani Suswa wind power plant.

He said the power plant is expected to generate an additional 300 megawatts into the power grid.

Njoroge pointed out that the Loyangalani-Suswa wind power line is currently being tested following its completion.

This he said will cater for 7 per cent of total electricity consumed countrywide and in effect push the cost of power downwards as it will not be thermal generated power.

Currently the amount of electricity generated by diesel powered generators accounts for 10 per cent of the country’s consumption.

According to the energy ministry, domestic tariff has been reviewed downward from 27 shillings per unit to 13 shillings per unit.

Senators raised concerns over the number of charges and levies imposed on electricity consumers despite the rural electrification program being donor-funded.


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