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Electricity is one of the largest expenditures for most small firms. This is not only limited to those in energy-intensive ventures such as manufacturing.
Fresh power tariffs show that small commercial consumers are charged Sh15.60 per unit. A unit means a kiloWatt hour (kWh).
These charges are for the firms whose consumption doesn’t exceed 15,000 units per postpaid billing period or pre-paid units purchase period.
This means a budding enterprise can spend an average of Sh200,000 monthly on power costs.
However, Sh15.60 per kWh is just for energy consumption and there are other added charges that escalate the entire unit costs. These include things like fuel cost and Value Added Tax (VAT).
High power costs have seen most firms adopt innovative energy-saving ways to bring down their electricity bill.
This also includes a shift to renewable energy as more firms also realise the need to go green and do their part in offsetting the carbon footprint.
Enterprise spoke to OFGEN chief executive Jibril Omar on ways a firm can save on power costs. His firm offers broad smart energy solutions to commercial and industrial clients with a speciality in solar power.