In the four months to June, Kenya Power has lost Sh5.6 billion in electricity sales due to reduced electricity consumption as an after effect to measures put in place to curb the coronavirus like the curfew.
“Between March and June 2020, electricity consumption declined by about 14.8pc corresponding to a decrease in energy consumption by about 341 GWh. Consequently, electricity sales revenue reduced by about KSh5.6 billion,” Cabinet Secretary Charles Keter told the Senate Committee on Energy.
The monopoly electricity distributor also attributes the loss to the Covid-19 restrictions that have seen businesses cut down their activities as profits plunged in every industry.
Stay at home orders increased electricity consumption by households by about 5pc. However, households only account for 10pc of the company’s revenues, which largely comes from heavy commercial consumers.
“Consequently, electricity sales revenue reduced by about Sh5.6 billion,” Mr Keter said during a virtual meeting chaired by Nyeri Senator Ephraim Maina.
He pointed out that out of Kenya Power’s 7.1 million customer base, 6 million are domestic customers consuming less than 100 units or Sh200 per month worth of electricity.
“Kenya Power revenue is from one million customers who are heavy commercial and SMEs.”
The firm has already issued its third profit warning in a row, meaning the utility’s net earnings will decline by at least 25 per cent of last year’s profit of Sh262 million — which was the worst in 16 years.
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