Kenya is taking steps to prepare for its next tariff review, scheduled for 2014, to add modified tariffs applicable from 2014-2017. The first process will have SNC Lavalin carrying out a study on the country’s electricity costs, with results expected to reduce power prices within the country.
Kenya’s Ministry of Energy will begin the survey next month, carried out until September, to hopefully help develop cost reflective tariffs and financial structures. International Development Association (IDA) will finance the project as part of a $330-million loan to the Kenya Electricity Expansion Project (KEEP).
Consultants will also be required to undertake a financial analysis of operational and investment requirements and to establish a cost recovery tariff with a reasonable return on investment.
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