Kenyan households and businesses will dig deeper into their pockets this month after the Energy and Petroleum Regulatory Authority (EPRA) announced fresh electricity cost adjustments that will push up power bills across the country.
In a notice released on Friday, June 19, EPRA confirmed that consumers will pay an additional KSh3.87 for every unit of electricity consumed in June. The increase stems from a combination of fuel costs, foreign exchange fluctuations, and a statutory water resource levy.
The biggest contributor to the increase is the fuel energy cost charge, which has been set at KSh3.14 per kilowatt-hour (kWh). Consumers will also pay a foreign exchange adjustment of KSh0.72 per unit, while a Water Resources Management Authority (WRMA) levy of KSh0.014 will apply to every unit consumed.
The new charges will affect all electricity consumed during meter readings taken in June, meaning both prepaid and postpaid customers are likely to notice higher costs when purchasing tokens or settling their monthly bills.
For many families already grappling with the rising cost of living, the latest adjustment is expected to add further pressure on household budgets.
EPRA explained that the foreign exchange charge is meant to recover losses incurred within the electricity sector due to fluctuations in currency exchange rates. According to the regulator, the industry recorded foreign exchange losses amounting to approximately KSh779 million over the past month.
Independent power producers bore the largest share of the losses at KSh663 million, accounting for nearly 85 per cent of the total amount. Kenya Power reported losses of KSh85 million, while Kenya Electricity Generating Company (KenGen) recorded KSh31 million in foreign exchange losses.
The adjustment reflects the reality that many power purchase agreements in Kenya are denominated in foreign currencies, particularly the US dollar. Whenever the shilling weakens against these currencies, the additional costs are passed on to consumers through monthly electricity bills.
The fuel cost charge, meanwhile, is linked to the price of fuel used by thermal power plants and imported electricity. Increased fuel expenses at several diesel-powered generation stations contributed to the latest increase.
The consumers would also be charged the WRMA levy, which finances the water resource management related to power production. This levy would be computed from the electricity generated from hydroelectric power stations such as Gitaru, Kamburu, Kiambere, Kindaruma, Masinga, Turkwel, and Sondu Miriu.
Though each of the changes above might seem insignificant, the cumulative impact of all these would probably affect millions of consumers in the nation. To households, small-scale enterprises and manufacturers that are currently facing tough times due to the high cost of production, the last price hike would mean increased electricity charges.
The new charges take effect immediately and will be reflected in electricity bills and token purchases made based on June meter readings.
