Electricity Consumers Set to Receive Ksh1.2 Billion Refund

Kenyan electricity consumers will receive an average reimbursement of Ksh1.31 for every Kwh hour consumed in August, ERC now assures.

The energy parastatal arrived at the decision after applying the wrong dollar rate while billing customers in the month under dispute.

Kenya’s monthly power consumption aggregates at 970 units thus justifying the Ksh1.31 per every unit used.

This reality comes as massive relief for middle class consumers. Power bills had risen by a high of 52% over the last one year pushing domestic and commercial expenditure to unmanageable levels.

“Notice is given that all prices for electrical energy…will be liable to a foreign exchange fluctuation adjustment of minus 131 Kenya cents per kWh for all meter readings to be taken in September,” said ERC director-general Pavel Oimeke in a Friday Kenya Gazette notice.

However, all the other expense vote heads as captured in normal power bills are set to remain intact.

ERC fuel surcharge will remain unchanged standing at the current rate of 2.50/kWh.

The refund is expected to further lessen expenditure burden on Kenyans after a fall in inflation rates from 4.35% to 4.04% in a similar period.

The recent increase in power costs had angered Kenyans and consequently complicated the government’s objective of lowering the cost of living.

The costing structure as introduced in August had relatively lowered electricity costs for poor households with minimal power usage.

However, the middle class were hardest hit as the cost of 50 kWh moved from Ksh695 to 1,063 under the new billing system.

The refund, therefore, is expected to massage this financial pain as incurred by Kenyans.