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Consultancy Services for Sixth Cost of Service Study (in association with AF Mercados of Spain)

Consultancy Services for Sixth Cost of Service Study (in association with AF Mercados of Spain)

Name of Client: Ministry of Energy and Petroleum

Narrative Description of Project: The main objective of the study was to provide information necessary for the tariff review after 2018 and thereafter and determine the costs of supply at the different voltage levels for the various categories of consumers. It involved the following:

  1. Review of bulk electricity power supply (generation) tariffs and tariff structures
  2. Review of transmission tariffs and tariff structures
  3. Review of distribution tariffs and tariff structures
  4. Review of retail electricity tariffs and tariff structures

Description of Actual Services Provided by Our Staff: The specific tasks included the following:

  1. Review and rationalization of KPLC’s real electricity tariffs in order to ensure global industry financial viability while protecting consumers and other stakeholders
  2. Develop cost reflective tariffs and tariff structures in transmission distribution and supply of electric power
  3. Develop transmission tariffs and wheeling tariffs for regional power trade initiatives and make recommendations as appropriate going forward
  4. Develop distribution tariffs to complement the transmission tariffs in place and make recommendations for implementation as appropriate going forward
  5. Develop a sustainable long-term T-o-U tariff for implementation for clarity best to define what ERC understands for economic based tariffs
  6. Recommend strategy for transition over time to economic based tariffs that are based on the full Long Run Marginal Costs at the various levels of the value chain
  7. Assess and propose appropriate tariff structure for rural based community power generation and distribution systems and in particular a framework for application by mini-hydros, off grids and solar systems such as Power Hive East Africa and Telek Power
  8. Assess and propose implications of net metering and related energy banking tariffs / costing. In particular access the effects this may have on the current off-taker revenues once introduced

Country: Kenya

Location within the County: N/A

Start Date: 2017

Completion Date: 2017