Kenyans are bracing for higher electricity bills should a new tariff review by Kenya Power receive a nod of approval from the Energy and Petroleum Regulatory Authority (EPRA).
The new tariff proposes to double the electricity charges for users consuming over 30 units monthly; meaning that they would remit Ksh21.68 Kilowatt per hour(kWh) as opposed to the current Ksh10kWh.
In addition, users who consume under 30 units pay Ksh14 kWh.
The move, according to the utility, is aimed at generating more revenue as Kenya Power has been relying on increased 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.
The introduction of a Ksh14kWh tariff for individuals who consume less than 30 units in a month indicates an increase of 40 percent. On the other hand, customers who use more than 30 units could see the increase rise up to 117 percent.
The prices for commercial and industrial customers would also be affected as they would pay Ksh16.48 per unit for consuming more than 15,000 units monthly. This denoted a 37 percent increase from Ksh12.
The demand charge also increased to Ksh1,100 per kilovolt-ampere (kVa) as opposed to the current Ksh800.
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.
