Kenya Power has revived its bid for a review of electricity prices months after power charges were slashed by 15 per cent, dealing a heavy blow to its finances.
The utility firm will submit a new tariff application to the Energy and Petroleum Regulatory Authority (Epra) between October and December, even as the firm seeks to climb out of a financial hole created by the power price cut in January.
“We’re looking forward to submitting a new application in the second quarter of this financial year,” a source in Kenya Power confirmed as quoted by Nation.
Epra has already made provision for Kenya Power’s new application. It has set aside funds for a conference to discuss the tariff review request. The Energy Act 2019 provides that power tariffs be reviewed every three years, although this hasn’t been respected due to the fact that Epra has often delayed or amended the rates to ease inflation pressure on households.
The last comprehensive review of electricity prices was in 2019.
Last January, however, Epra cut the energy charge—the largest component of the power bill that caters for the actual electricity used—by 15 per cent following a directive by President Kenyatta as he sought to address high power costs.
The three-year price review is crucial for firms along the country’s power supply chain and involves forecasting electricity demand, the costs associated with generating, transmitting, and distributing electricity, and the revenue needed by sector players to sustain their operations.
Read also; Kenya Power Begin Talks to Cut Electricity Bills Further by 15%.
