Kenya Power and Lighting Company (KPLC) announced on Monday that it would raise KES 31 billion from consumers under the new electricity tariff set to start in April.
The funds raised will go towards upgrading the outdated distribution system and supporting critical projects by other state-owned companies in power generation and transmission.
The proposed tariff has been submitted to the Energy and Petroleum Regulatory Authority (EPRA) for approval, marking the first time retail power prices will be increased since 2018.
Acting Managing Director of Kenya Power, Geoffrey Muli, stated that the extra billions stem from the KES 157 billion in revenue collected by Kenya Power during the 2021/2022 fiscal year.
We are expecting to get between 15 percent and 20 percent more in revenue from the KES 157 billion that we collected last year if the new tariffs are approved.
Acting Managing Director of Kenya Power – Geoffrey Muli
Kenya Power plans to raise the rate for electricity usage below 30 kWh per month to KES 28.01 per unit, up from KES 20.70, a 35.3% increase. The increase is due to factors such as fuel and forex adjustments.
The funds will be used to upgrade transmission lines and provide additional capital and operational funds to Ketraco and Rerec. 64% of revenue goes to Independent Power Producers and the Kenya Electricity Generating Company, 2% Ketraco, and 1% to Rerec.
Public consultation begins today and the final tariffs will be presented to Parliament in April.
The higher tariffs will impact households and businesses as production costs increase.
The new prices threaten to hinder Kenya’s efforts to lower energy costs and be on the same level with other African countries like Ethiopia, South Africa, and Egypt.
The proposed tariffs arrive as many industrial and household customers are switching to solar energy due to high electricity bills and the unreliable national grid.
On their part,Kenya Power argues that the increased tariffs are necessary as the current electricity prices have been in effect since 2019.
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