EPRA Introduces New Electricity Prices for February

Undated image of a customer keying in tokens in a prepaid electric meter.
A photo of a customer keying in tokens in a prepaid electric meter.

Kenyans are set to enjoy reduced electricity prices after being handed a reprieve by The Energy and Petroleum Regulatory Authority (EPRA).

The Regulatory Authority revised the January electricity prices by Kenya Power which was at Ksh7.18 per unit.

In the revised electricity rates for the month of February, Kenyans are being charged Ksh6.59 per unit which is a 3.8 per cent decrease.

EPRA boss Daniel Kiptoo holds talks with former Energy CAS Zachary Ayieko
EPRA boss Daniel Kiptoo holds talks with former Energy CAS Zachary Ayieko on Tuesday, March 11, 2022.

On why the prices had decreased significantly, EPRA announced that it was necessitated by lower global crude prices which have subsequently eased the cost of producing thermal power.

A breakdown of Ksh500 worth of tokens is as follows, "KPLC Token, MtrNo:04217830*** Token:2476-3062-5077-4056-8***, Date:2023-01-31 21:07, Units:24.43, Amt Ksh:500.00, Token Amt:188.19, VAT:58.16, Fuel Energy Charge:175.43, Forex Charge:47.07, EPRA Charge:0.73, WRA Charge:0.26, REP Charge:9.4, Inflation Adjustment:20.76."

Currently, thermal power contributes 13.2 per cent of the country’s grid power dwarfing other renewable sources like geothermal, solar, wind power, and hydropower imports from Uganda, Tanzania, and Ethiopia.

Kenyans would have enjoyed a higher price reduction if EPRA had not revised inflation adjustment rates earlier.

In January 2023, EPRA raised the inflation adjustment cost to 85 cents per unit from 67 cents per unit an adjustment that will be in place until June 2023.

This was after the Kenya National Bureau of Statistics (KNBS) announced an inflation rate of 9.0 per cent in January 2023.

Under the KNBS inflation rate for 2023, electricity prices were projected to rise by 0.5 per cent.

The February price reduction could also be short-lived if EPRA adopts Retail Tariff Application (RTA) proposed by Kenya Power.

EPRA in an official statement on Wednesday, February 8, revealed that it had concluded public participation on the RTA in Nairobi.

“We have concluded the public participation workshop proposed RTA submitted by Kenya Power for 2022/23- 2025/26 tariff control period.

“Subsequently, EPRA invites energy sector stakeholders, electrical workers and contractors, consumer associations, National and County Governments to the Mombasa Public Participation Workshop on Friday, February 10,” the statement read in part.

If EPRA adopts the recommendations made in the RTA, electricity prices will increase by up to 78 per cent starting from April 2023.

The sharp increase is due to Kenya Power’s proposal to withdraw monthly subsidies that had been put in place by the government to cushion poor households.

Kenya Power staff at work
Kenya Power staff attending to a transformer during a past maintenance exercise in Nairobi County.
Kenya Power