EPRA announces three main changes in electricity billing
The government, through the Energy and Petroleum Regulatory Authority (EPRA), has announced marginal changes to electricity billing
The government, through the Energy and Petroleum Regulatory Authority (EPRA), has announced marginal changes to electricity billing following the publication of new tariff adjustments.
The tariff adjustments gazetted on Friday, February 13, affect the fuel energy cost charges, foreign exchange fluctuation adjustment, and the Water Resource Management Authority (WRMA) levy.
While the adjustments are always done routinely, the implications of the latest changes are significant for many Kenyans who are already struggling with a high cost of living.
The most significant revision was on the foreign exchange adjustment, with EPRA setting the charge at 120.61 cents per kilowatt hour, which is equivalent to Ksh1.2061 per unit consumed.
This charge was adjusted upwards because Kenya’s power sector depends partly on foreign currency, as some electricity producers are paid in dollars, while at the same time, fuel for thermal power plants is imported.
The published data shows that foreign exchange losses amounted to approximately Ksh1.31 billion, a cost that will now be passed on to consumers under the latest tariff adjustments.
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The second major adjustment is the Fuel Energy Cost Charge, which has been set at Ksh3.10 per kilowatt-hour, with this charge covering the cost of running thermal power plants.
It is worth noting that thermal plants in the country use diesel or heavy fuel oil, which are sometimes very expensive and are always affected by changes in global oil prices.
Additionally, the country generates electricity mainly from geothermal and hydropower, so when hydropower is low or demand rises, increased use of thermal power raises fuel costs for consumers.
The third adjustment was the Water Resource Management Authority levy, which was set at 1.21 cents per kilowatt-hour, equaling Ksh0.0121 per unit.
The Water Resource Management Authority levy is contributed by consumers of electricity to support the management of water resources used in hydropower generation.
When all three adjustments are combined, it means that a person or household that uses 300 units could pay nearly Ksh1,300 extra cost from forex and fuel charges alone, before other levies.
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