Kenya Power move to raise electricity tariffs by up to 117 percent
Kenya Power in the new proposed changes moves to raise electricity tariffs by up to 117 percent amid the high cost of living
Kenya Power in the new proposed changes moves to raise electricity tariffs by up to 117 percent amid the high cost of living.
Should a proposed rate review by Kenya Power be approved by the Energy and Petroleum Regulatory Authority, Kenyans should prepare for higher electricity costs (EPRA).
Users who consume more than 30 units of power per month will pay Ksh21.68 Kilowatt-hours (kWh), double the current Ksh10kWh rate under the proposed new electricity tariffs.
Additionally, consumers that use less than 30 units pay Ksh14 per kWh.
Kenya Power claims that the change is intended to increase revenue as Kenya Power has been dependent on rising sales.
“In order to achieve this broad mandate, there is a need for an electricity retail tariff that is just and reasonable to allow Kenya Power Company to maintain its financial integrity, attract capital, operate efficiently and compensate investors for risks assumed.”
“The rationale of this retail tariff review is to incorporate change in electricity sub-sector cost structure and update key assumption with an aim of providing adequate sector revenue requirements,” the statement read in part.
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The introduction of a Ksh14kWh tariff for individuals who consume less than 30 units in a month indicates an increase of 40 percent.
Customers that use more than 30 units, however, may experience an increase of up to 117 percent.
Commercial and industrial users’ costs would also change since they would be charged Ksh16.48 per unit if they consumed more than 15,000 units per month. This represented an increase of 37% from Ksh12.
In addition, the demand charge was raised from the previous Ksh800 per kilovolt-ampere (kVa) to Ksh1,100.
The current tariff, which received the nod from EPRA in November 2018, indicated that Kenyans who used less than 100 units monthly would pay Ksh10 kWh while those who used more than 100 units would remit Ksh15.8 kWh.
“Pursuant to Section 165 of the Energy Act, 2019, which provides for variation of effective rates and tariffs charged to consumers for the supply and consumption of electricity, KPLC assumes the approval of a multi-year retail tariff application that would become effective on April 2023,” Kenya Power stated.
EPRA, which is mandated to set, review and adjust electric power tariffs, on Wednesday, January 25, invited the public and stakeholders to share their views on the proposed tariffs.
If approved, the new tariffs will run for a period of three years.
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