News and Analysis
November 15, 2024
The Energy and Petroleum Regulatory Authority (EPRA) recently approved Kenya Power’s request for a review of electricity tariffs that are set to take effect this week on Saturday, April 1.
Under the new tariffs, KPLC (as it is popularly known through its ticker at the Nairobi Securities Exchange) has classified consumers into three categories - based on their monthly consumption.
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The first group will be the low consumers (those who use up to 30 units per month).
The second category are those who consume more than 30 but less than a hundred units; while the third one is for those who consume more than 100 units per month.
Households consuming below 30 units a month will have a 3.6% reduction in costs, from Ksh21.99 to Ksh21.16 per unit.
For this category of low consumers, Ksh500 will now get them 23.6 units up from the 22.7 units they have been getting.
The cost of electricity will have at least a 19% increase for households that consume 30-100 units a month.
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This category will see the cost of tokens increased by 19%, from Ksh21.99 to Ksh26.10 per unit. For Ksh1,000, they will now get 38.3, down from the 45.5 units they currently receive.
Households that spend more than 100 units will have the cost of their tokens increased from Ksh27.92 to Ksh31.75 per unit (14% increase). For Ksh2,000, one will now get 62.9 units down from 71.6 units.
EPRA approved Kenya’s Power’s request for tariff change on the grounds of a social policy where the vulnerable members of society will be protected by having a reduction in the amount paid by low-income households (less than 30 units per month).
“With a view of meeting the social policy objective, the Lifeline Tariff band has been reduced from 100-kilowatt hour(kWh) per month to 30kWh, to cushion and address the needs of low-income households in the society.
“Accordingly, these consumers will be cross-subsidised by the other consumer categories in order to protect the vulnerable members of society. Despite this reduction, the Lifeline Tariff band will account for 6.3 million customers, representing 71.31 per cent of the total number of consumers. This covers a majority of the vulnerable sector base also known as 'Hustlers'," EPRA’s statement read in part.
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The development came a few weeks after Kenya Power stopped issuing a breakdown on the electricity bills in March 2023.
Initially, the utility firm would send a notification to every consumer purchasing electricity costs. The message would detail the money sent and the units received, with a further breakdown of these costs:
However, in March KPLC announced that it would only be indicating the amount paid, the token amount, and a combined total of all other charges without itemising them.
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The company cited numerous requests by Kenyans who wished to get a less detailed bill.
“The change has been effected after numerous engagements with the public including a recent survey where our customers said they wanted a briefer statement of their electricity bills,” the utility firm indicated.
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