Electricity cost (Tokens) to go up for a second month amid the high cost of living

Electricity cost (Tokens) to go up for the second month in a row amid the high cost of living and high inflation rate.

On account of high oil prices and a depreciating shilling, the cost of electricity has increased for the second consecutive month.

With inflation at an all-time high, this further stresses Kenyans who are already suffering from the high cost of living.

The fuel and foreign exchange portions of the electricity cost were increased on Friday by the Energy and Petroleum Regulatory Authority (EPRA).

The Foreign Exchange Fluctuation Adjustment will rise to Sh1.48 per unit from Sh1.37 in September, while the Fuel Cost Charge will rise to Sh7.09 from Sh6.79 per unit of energy consumed this month.

“Notice is given that all prices for related electrical energy specified in Part II (the Schedule of Tariffs 2018) will be liable to a fuel energy cost charge of plus 709 Kenya cents per kilowatt hour (kWh) for all meter readings to be taken in October 2022,” said EPRA in relation to FCC in a gazette notice Friday.

Since January, FCC has been steady at Sh4.63 per unit, while the currency adjustment averaged 73 cents during the preceding eight months.

The 15% drop in power rates that was implemented early this year as a result of former President Uhuru Kenyatta’s instruction was backed by the two components remaining at their current levels.

Following the increases in power costs in September and October, the reduction in electricity expenses has subsequently been lost.

In paying FCC, consumers cushion thermal power producers – which burn heavy fuel oil to generate electricity – from the high cost of fuel. 

The price of crude oil, which served as the basis for the new fuel tax, increased from $82 (Sh8.140) in January to an average of $117.53 (Sh14,103) in August.

The Forex adjustment, also a pass-through cost, protects the power sector players from the volatility of the local currency when they are repaying loans, most of them denominated in US dollars as well as when they are importing equipment and other materials not available locally.

The Kenya shilling has weakened to hit lows of Sh121 to the US dollar last week from an average of Sh113.58 in January.

The FCC, the currency adjustment, and the water levy are just a few of the parts of the power bill that EPRA has the authority to modify each month.

Every six months, the inflation adjustment must be adjusted to reflect the increased or lower cost of purchasing goods and services depending on the environment.

Any expectations for less expensive power are further dimmed by two subsequent price rises.

The 15 percent decrease, which was part of a planned 30 percent decrease in the cost of electricity recommended by the Presidential Taskforce on Review of Power Purchase Agreements (PPAs) in a report in September last year, has been eliminated by recent increases in fuel prices and foreign exchange adjustments.

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Electricity cost (Tokens) to go up for a second month amid the high cost of living

Electricity cost (Tokens) to go up for the second month in a row amid the high cost of living and high inflation rate.

On account of high oil prices and a depreciating shilling, the cost of electricity has increased for the second consecutive month.

With inflation at an all-time high, this further stresses Kenyans who are already suffering from the high cost of living.

The fuel and foreign exchange portions of the electricity cost were increased on Friday by the Energy and Petroleum Regulatory Authority (EPRA).

The Foreign Exchange Fluctuation Adjustment will rise to Sh1.48 per unit from Sh1.37 in September, while the Fuel Cost Charge will rise to Sh7.09 from Sh6.79 per unit of energy consumed this month.

“Notice is given that all prices for related electrical energy specified in Part II (the Schedule of Tariffs 2018) will be liable to a fuel energy cost charge of plus 709 Kenya cents per kilowatt hour (kWh) for all meter readings to be taken in October 2022,” said EPRA in relation to FCC in a gazette notice Friday.

Since January, FCC has been steady at Sh4.63 per unit, while the currency adjustment averaged 73 cents during the preceding eight months.

The 15% drop in power rates that was implemented early this year as a result of former President Uhuru Kenyatta’s instruction was backed by the two components remaining at their current levels.

Following the increases in power costs in September and October, the reduction in electricity expenses has subsequently been lost.

In paying FCC, consumers cushion thermal power producers – which burn heavy fuel oil to generate electricity – from the high cost of fuel. 

The price of crude oil, which served as the basis for the new fuel tax, increased from $82 (Sh8.140) in January to an average of $117.53 (Sh14,103) in August.

The Forex adjustment, also a pass-through cost, protects the power sector players from the volatility of the local currency when they are repaying loans, most of them denominated in US dollars as well as when they are importing equipment and other materials not available locally.

The Kenya shilling has weakened to hit lows of Sh121 to the US dollar last week from an average of Sh113.58 in January.

The FCC, the currency adjustment, and the water levy are just a few of the parts of the power bill that EPRA has the authority to modify each month.

Every six months, the inflation adjustment must be adjusted to reflect the increased or lower cost of purchasing goods and services depending on the environment.

Any expectations for less expensive power are further dimmed by two subsequent price rises.

The 15 percent decrease, which was part of a planned 30 percent decrease in the cost of electricity recommended by the Presidential Taskforce on Review of Power Purchase Agreements (PPAs) in a report in September last year, has been eliminated by recent increases in fuel prices and foreign exchange adjustments.

Also read,

Ruto sets one condition ‘hustlers’ must fulfill to access Hustler Fund

Ruto gazettes IEBC vacancies as Chebukati responds to the announcement

Ruto promises to revive failed Jubilee school laptop project

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Electricity cost (Tokens) to go up for a second month amid the high cost of living

Electricity cost (Tokens) to go up for the second month in a row amid the high cost of living and high inflation rate.

On account of high oil prices and a depreciating shilling, the cost of electricity has increased for the second consecutive month.

With inflation at an all-time high, this further stresses Kenyans who are already suffering from the high cost of living.

The fuel and foreign exchange portions of the electricity cost were increased on Friday by the Energy and Petroleum Regulatory Authority (EPRA).

The Foreign Exchange Fluctuation Adjustment will rise to Sh1.48 per unit from Sh1.37 in September, while the Fuel Cost Charge will rise to Sh7.09 from Sh6.79 per unit of energy consumed this month.

“Notice is given that all prices for related electrical energy specified in Part II (the Schedule of Tariffs 2018) will be liable to a fuel energy cost charge of plus 709 Kenya cents per kilowatt hour (kWh) for all meter readings to be taken in October 2022,” said EPRA in relation to FCC in a gazette notice Friday.

Since January, FCC has been steady at Sh4.63 per unit, while the currency adjustment averaged 73 cents during the preceding eight months.

The 15% drop in power rates that was implemented early this year as a result of former President Uhuru Kenyatta’s instruction was backed by the two components remaining at their current levels.

Following the increases in power costs in September and October, the reduction in electricity expenses has subsequently been lost.

In paying FCC, consumers cushion thermal power producers – which burn heavy fuel oil to generate electricity – from the high cost of fuel. 

The price of crude oil, which served as the basis for the new fuel tax, increased from $82 (Sh8.140) in January to an average of $117.53 (Sh14,103) in August.

The Forex adjustment, also a pass-through cost, protects the power sector players from the volatility of the local currency when they are repaying loans, most of them denominated in US dollars as well as when they are importing equipment and other materials not available locally.

The Kenya shilling has weakened to hit lows of Sh121 to the US dollar last week from an average of Sh113.58 in January.

The FCC, the currency adjustment, and the water levy are just a few of the parts of the power bill that EPRA has the authority to modify each month.

Every six months, the inflation adjustment must be adjusted to reflect the increased or lower cost of purchasing goods and services depending on the environment.

Any expectations for less expensive power are further dimmed by two subsequent price rises.

The 15 percent decrease, which was part of a planned 30 percent decrease in the cost of electricity recommended by the Presidential Taskforce on Review of Power Purchase Agreements (PPAs) in a report in September last year, has been eliminated by recent increases in fuel prices and foreign exchange adjustments.

Also read,

Ruto sets one condition ‘hustlers’ must fulfill to access Hustler Fund

Ruto gazettes IEBC vacancies as Chebukati responds to the announcement

Ruto promises to revive failed Jubilee school laptop project

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Electricity cost (Tokens) to go up for a second month amid the high cost of living

Electricity cost (Tokens) to go up for the second month in a row amid the high cost of living and high inflation rate.

On account of high oil prices and a depreciating shilling, the cost of electricity has increased for the second consecutive month.

With inflation at an all-time high, this further stresses Kenyans who are already suffering from the high cost of living.

The fuel and foreign exchange portions of the electricity cost were increased on Friday by the Energy and Petroleum Regulatory Authority (EPRA).

The Foreign Exchange Fluctuation Adjustment will rise to Sh1.48 per unit from Sh1.37 in September, while the Fuel Cost Charge will rise to Sh7.09 from Sh6.79 per unit of energy consumed this month.

“Notice is given that all prices for related electrical energy specified in Part II (the Schedule of Tariffs 2018) will be liable to a fuel energy cost charge of plus 709 Kenya cents per kilowatt hour (kWh) for all meter readings to be taken in October 2022,” said EPRA in relation to FCC in a gazette notice Friday.

Since January, FCC has been steady at Sh4.63 per unit, while the currency adjustment averaged 73 cents during the preceding eight months.

The 15% drop in power rates that was implemented early this year as a result of former President Uhuru Kenyatta’s instruction was backed by the two components remaining at their current levels.

Following the increases in power costs in September and October, the reduction in electricity expenses has subsequently been lost.

In paying FCC, consumers cushion thermal power producers – which burn heavy fuel oil to generate electricity – from the high cost of fuel. 

The price of crude oil, which served as the basis for the new fuel tax, increased from $82 (Sh8.140) in January to an average of $117.53 (Sh14,103) in August.

The Forex adjustment, also a pass-through cost, protects the power sector players from the volatility of the local currency when they are repaying loans, most of them denominated in US dollars as well as when they are importing equipment and other materials not available locally.

The Kenya shilling has weakened to hit lows of Sh121 to the US dollar last week from an average of Sh113.58 in January.

The FCC, the currency adjustment, and the water levy are just a few of the parts of the power bill that EPRA has the authority to modify each month.

Every six months, the inflation adjustment must be adjusted to reflect the increased or lower cost of purchasing goods and services depending on the environment.

Any expectations for less expensive power are further dimmed by two subsequent price rises.

The 15 percent decrease, which was part of a planned 30 percent decrease in the cost of electricity recommended by the Presidential Taskforce on Review of Power Purchase Agreements (PPAs) in a report in September last year, has been eliminated by recent increases in fuel prices and foreign exchange adjustments.

Also read,

Ruto sets one condition ‘hustlers’ must fulfill to access Hustler Fund

Ruto gazettes IEBC vacancies as Chebukati responds to the announcement

Ruto promises to revive failed Jubilee school laptop project

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