Cost of electricity to go up by 78pc
From units consumed each month. These units are recorded by an electricity meter installed at a customers premises. There are bye-laws which specify the applicable tarrif and rate per unit.
By Isaac OGANGA
The cost of Electricity prices will from April increase by up to 78 percent if the energy sector regulator Energy and Petroleum Regulatory Authority (EPRA) approves new tariffs from Kenya Power that seek to withdraw the monthly subsidy that cushions poor households.
Kenya Power wants to increase the cost of a unit of power for the usage of fewer than 30 kilowatts per month to Sh28.01 a unit, up from the current Sh20.70, reflecting a growth of 35.3 percent.
This is based on assumptions that surcharge levies in power bills like the fuel and forex adjustments remain at January levels.
Those consuming 50 kilowatt hours (kWh) a month, and who bear the biggest brunt of the subsidy withdrawal, will pay Sh36.92 a unit from the current Sh20.70, representing a 78.3 percent jump.
If implemented, the higher tariffs will hurt household budgets and raise the already high cost of doing business in Kenya.
Kenya Power holds that the higher tariffs are justified because the present electricity prices lapsed in 2019.
In 2018, Epra reduced the retail prices of electricity after an order from then-President Uhuru Kenyatta in the wake of widespread complaints from domestic customers and small businesses over a costly tariff introduced the previous July.
The tariff almost doubled the monthly bills for higher-income households, triggering complaints that forced Epra to cut the tariff from November 2018 to July 2019 to Sh10 per kilowatt hour from Sh15.80 for customers who use below 100 kilowatts per month.
The expiry of the temporary tariffs is what is emboldening Kenya Power to push for a review of the tariffs upwards and boost earnings.
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