EPRA rejects the push by Kenya power to have customers pay electricity bills in dollars
2 min read
EPRA rejects the push by Kenya power to have customers pay their electricity bills/tokens in dollars
EPRA rejects the push by Kenya power to have customers pay their electricity bills/tokens in dollars.
The Energy and Petroleum Regulatory Authority (EPRA) on Wednesday, March 1 stated that such a move may lead to unspecified consequences, especially on the economic status of Kenyan electricity consumers.
Daniel Kiptoo, EPRA’s Director General claimed that should the plan succeed, Kenya Power will be compensated twice for exchange rate losses.
“You can’t have your cake and eat it, that is collect in dollars and have the forex adjustments as well. It has to be one,” stated Kiptoo.
EPRA also asserted that Kenya Power is fully compensated for foreign exchange losses in current bills, and therefore, the question of US dollars does not arise.
In order to prevent currency losses for costs like loan repayments, the power company is pressing for the payment of electricity in hard currencies.
According to KPLC, the falling Kenyan Shilling is largely due to debt repayments made in dollars.
Instead of requiring customers to pay their bills in US dollars, EPRA encouraged Kenya Power to look at other, more efficient and problem-focused options.
Inside government plans to employ 3,000 Kenyans
Plans underway to issue every household with government cooking gas cylinder- Ruto
EPRA announces plans for cheaper cooking gas after Ruto’s directive
“The proposal is their request to solve a greater macro problem, which may not be necessary if the interventions planned by government work,” Kiptoo explained.
In the current arrangements, the foreign exchange fluctuation adjustment rise to Ksh1.85 per kilowatt hour (kWh) in February electricity bills.
The current fluctuation adjustment of Ksh1.85 per kilowatt hour is higher than Ksh0.73 which was reviewed in August 2022.
Kenyan Shilling has rapidly depreciated against the US dollar with the current exchange rate standing at Ksh127 against US Dollar.
Also read,
US offers a cash reward of $5 million for Al-Shabaab spokesperson
Ruto lifts Uhuru’s ban on independent power producers (IPPs)
Kenya Power records Ksh1 billion half-year loss
Follow us
