Kenya Power is seeking to review its tariffs upwards by 20%, a move that is likely to increase the cost of living.
If approved, the new pricing structure will see domestic consumers utilizing less than 100 kilowatts pay KSh12.50 per unit, up from the current KSh10.
Similarly, small commercial consumers will have their consumption charge rise to KSh19.53 from the current KSh15.80 per unit.
Kenya Power had in late September 2019 proposed an increase in tariffs. However, EPRA and Alfred Keter, CS for Energy declined it. Therefore, the firm is back to the regulator to follow up on the proposal.
As reported by Business Daily, households consuming 50-kilowatt hours (kWh) paid KSh816 last month compared to KSh556 in May 2013. This reflects a 47% increase. This continues to happen despite billions of shillings of investments in cheaper renewable sources of power such as wind, solar and geothermal.
The electricity supplier believes higher tariffs may help revert its negative profit growth and review the temporary reduction of power charges that expired in July. For instance, the firm has issued a profit warning for the second year in a row.
However, the review propositions are still under review by the regulatory authority (EPRA), and will only take effect if and when approved.
The Energy and Petroleum Regulatory Authority (EPRA) is the state organisation mandated to review and approve tariff amendments. It was established as the successor to the Energy Regulatory Commission (ERC) under the Energy Act, 2019.
Kenya Power is a limited liability company which transmits, distributes and retails electricity to customers throughout the country.