It is reported that electricity consumers will have to dig deeper into their pockets to pay for electricity this June.
They will have to pay an additional Sh817.6 million in power bills this month to compensate thermal power producers following a rise in the price of fuel as announced by EPRA.
Energy and Petroleum Regulatory Authority (EPRA), in its June review last week, raised the fuel energy charge by 24 per cent to Sh3.63 making it the highest level since May 2019, up from Sh2.92 in May for each unit (kilowatt-hour) of electricity that consumers will buy this month.
EPRA also slightly raised the foreign exchange rate fluctuation adjustment charge by 10 cents to align the amount of money that Kenya Power will pay to energy producers with this fluctuation, as the contracts between the firm and the generators are denominated in US dollars and Euros.
“Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2018, notice is given that all prices for electrical energy specified in Part II of the said schedule will be liable to a fuel energy cost charge of plus 363 Kenya cents per kWh for all meter readings to be taken in June 2021.”
According to the increase in power costs, this means that for a small household that uses 200 units every month which has been selling for Sh3,596 for their daily needs, will now pay Sh160 more this month. Nearly 20 per cent of this bill, or Sh726, will go to compensate thermal power generators through the fuel energy charge, while Sh502.55 is Value Added Tax (VAT) and just Sh2,037.5 for the actual consumption.
The pain will be felt mostly by those who consume more, including businesses and manufacturers, who use thousands of units monthly. This will discourage businesses from venturing into energy-intensive investments such as manufacturing to avoid the rising cost of operations.