Pain for Kenyans as EPRA raises electricity prices by up to 63pc
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EPRA raises electricity prices by up to 63pc after approving higher tariffs by Kenya Power, which targets to raise more money
EPRA raises electricity prices by up to 63pc after approving higher tariffs by Kenya Power, which targets to raise more money.
Electricity prices will from next week increase by up to 63 percent after the energy sector regulator approved higher tariffs by Kenya Power, which targets to raise more money to fund the upgrade of its aging distribution systems.
Electricity costs will rise by much to 63 percent as of April 1, 2023, according to a statement from the energy regulator that was read by EPRA’s director general, Daniel Kiptoo Bargoria.
EPRA raised base power prices to Sh12.22 per unit from Sh10 for those consuming below 30 units, a 22.2 percent jump.
It has put further pressure on consumers using between 30-100 units by increasing the cost from Sh10 to Sh16.3, a 63 percent increase, effective April.
Those consuming more than 100 units of electricity will now pay Sh20.97 per unit up from Sh15.8 currently, a 32 percent increase.
“With a view of meeting the social policy objective, the Lifeline Tariff band has been reduced from 100-kilowatt hour(kWh) per month to 30kWh, to cushion and address the needs of low-income households in the society,” EPRA said.
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“Accordingly, these consumers will be cross-subsidized by the other consumer categories in order to protect the vulnerable members of society. Despite this reduction, the Lifeline Tariff band will account for 6.3 million customers, representing 71.31 percent of the total number of consumers. This covers a majority of the vulnerable sector base also known as ‘Hustlers’,” the regulator added.
The newly approved tariffs will see Kenya Power net Sh177 billion in revenues in the current 2022/2023 financial year — some Sh18 billion lower compared to the Sh195 billion the utility firm had targeted in its initial application to Epra.
Based on the new tariffs, Kenya Power will net Sh184.9 billion, Sh189.6 billion, and Sh193.7 billion in revenues for the financial years 2023/24, 2024/25, and 2025/26 respectively.
“This will meet energy purchase costs and allow for system expansion,” EPRA said.
The request by Kenya Power was submitted to EPRA in October 2022, when the power distributor asked for a necessary review of the unit prices.
Kenya Power observed that the new tariffs will grant the distributor a net earning of Ksh184.9 billion in the Financial Year 2023/24.
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