For kenya power’s last mile connectivity programme prepared by safety, health & environment department (she)-kplc august 2014
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- KPLC’S LAST MILE CONNECTIVITY PROJECT DESCRIPTION
- 1.15Background
- 1.16Effect of the Standard Rate
- 1.17Proposed Model to Accelerate Connectivity
1.13Preparation of ESMFPreparation of the ESMF included the following stages:
KPLC’S LAST MILE CONNECTIVITY PROJECT DESCRIPTION1.14IntroductionKenya Power supports the efforts of the Government of Kenya in the Electrification Schemes. Kenya Power projects normally results in significant amount of construction work for distribution and transmission lines, but with minimal environmental impacts. The Low Voltage lines establishment and extension of cables to households shall be subjected to environmental screening so as to determine impacts and propose various mitigation measures on the impacts to be identified and implemented in compliance with the donors’ safeguard policies as well as relevant national environmental legislation. 1.15BackgroundOver the last 10 years the country has seen a steady growth in electricity connections both in urban and rural areas. This has been driven by a combination of various factors chief among them being the incoming of a new political dispensation in 2002. The new government demanded that the company accelerate connectivity. This called for a totally new approach in the connectivity model within KPLC. In 2004, a new connection policy was developed to address this new challenge and also take cognisance of the more empowered customer and public. In it, among other things, the cost for connection to customers on low voltage was standardized for single phase and three phase to a minimum of KShs. 32,480 and KShs. 44,080 respectively (between 3 and 8KVA, including connection charges @ KShs. 1000/= per KVA, VAT inclusive, and within 600m of a distribution transformer). This saw an unprecedented increase in connections as shown by the huge jump between FY 2005-2006 and 2006-2007. The increase continued year to year. Figure : Customers Connectivity Trend (Source: KPLC Annual Reports & Financial Statements) In order to accelerate the connectivity rate and achieve annual connections in the range of 1.3 million, it is proposed that a new model be adopted that will help overcome the current bottlenecks in the connectivity pipeline. This new model focuses on availing the service connection including the meter to the customer premises prior to engaging the customer to pay for the service. As such, activities such as wayleaves acquisitions together with attendant county and other authorities’ permits and approvals, materials procurement/delivery logistics, construction, etc. shall be dealt with prior to the customer being requested to connect. The county governments are gradually finding their ground and are expected to spur growth of businesses in their jurisdictions as they put more focus on infrastructure development. Coupled with the upcoming Vision 2030 flagship projects with the attendant ripple effect in their vicinity, the proposed strategy is bound to lead to accelerated economic growth and expansion. Some of the benefits of this proposed model are:
1.16Effect of the Standard RateThe accelerated connectivity at the standardized rates has been achieved at a great cost to the company. Over the last five years during which time this initiative has been implemented, cost of all inputs has shot up by wide margins, as evidenced by the few items listed in the table below: Table : Materials Cost Comparison
From the above, it is clear that KPLC has been subsidizing the input costs to a great extent. In all cases the additional costs above the standard (maximization) rates have been met by KPLC. 1.17Proposed Model to Accelerate ConnectivityThe Government has pledged to stimulate economic growth and accelerate job creation to improve the economic wellbeing of Kenyans. Among the many interventions to achieve this is expansion of the power distribution system to be within reach and thus enable more Kenyans connect to the grid at affordable cost and hence initiate economic activities at the micro-economic level. The current trend of network expansion driven by customer demand is approaching saturation as seen from the line graph in Figure 1. In the foreseeable future there is a likelihood of the annual connectivity stagnating at the 300,000-400,000 level. To jumpstart and accelerate connectivity, a new thinking is needed as happened in 2004. To reduce the cost burden of increased connectivity on KPLC, as well as reduce the amount paid by the customer to connect to the grid, the strategy proposed is to extend the distribution network to as near the customer as possible using external or government funding. This can initially be achieved by extending the low voltage network on existing and other upcoming distribution transformers to reach households lying within transformer protection distance (maximization). This model would involve building low voltage lines both single phase and three phase (to a small extent) along rural access roads. Thereafter the cost of connecting customers can be at the maximization rate based on the new average actual cost. The company will still continue implementing the following existing connectivity expansion strategies:
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