The Energy and Petroleum Regulatory Authority (EPRA) has indicated that electricity costs for October will slightly rise after the foreign exchange fluctuation adjustment rose to 114.89 cents per kWh from 103.32 cents per kWh in last month’s notice.
- In the latest notice in the Kenya Gazette, EPRA also stated that the fuel energy cost charge dipped from 343 cents per kWh last month to 339 cents.
- The slightly higher forex costs come as a surprise because the Kenyan shilling remains stable against the dollar, standing at KSh 129.19.
- By September this year, electricity costs had fallen by 22.3% caused by a decline in reliance on independent power producers (IPPs) and currency stability.
“Pursuant to Clause 2 of Part III of the Schedule of Tariffs 2023, notice is hereby given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a foreign exchange fluctuation adjustment of plus 114.89 cents per kWh for all meter readings taken in October, 2024,” EPRA mentioned.
Most households and businesses will face a 42% loss in receivable units of power they purchase this month. This year, the regulator hiked electricity prices in January, June, and August, largely due to fuel energy costs. Adjustments in the forex costs indicate that thermal power producers generated more electricity.
EPRA also reviews the water resource management authority (WARMA) levy which has been set at 1.39 cents per kWh. However, other components for rising power costs are driven by factors such as inflation, the base tariff (reviewed every three years), and the Value Added Tax (VAT).
