Kenyans to Pay Lower Power Bills

Kenyans are set to benefit more from the lower power bills that were put in place two months ago as charges on fuel, currency fluctuation and water remain flat.

These prices decreased after President Uhuru Kenyatta ordered for a review of all the contracts that were in place with all the independent power producing company’s in the country as a way of ensuring that the cost of power is reduced so that more Kenyans can be in a position to access affordable power.

Kenyans are currently able to pay for a forex levy, which is linked to foreign currency expenses incurred by Kenya Power and the independent power producers. The levy has remained unchanged at Sh0.84 per unit after dropping by Sh0.16 last month for the first time since the year started, translating to lower bills.

The fuel levy has remained unchanged at Sh2.31 per unit since January while that for hydroelectric power has dropped seven per cent to Sh0.0236 per kilowatt hour (kWh) of electricity consumed this month.

Data from the power regulatory body states that homes that consume a total of 200 units in a month paid Sh.3,361 in the month that just ended as compared to Sh.3,398 that they paid I the month of June. On the other hand, consumers who used 50 units last month paid Sh.525 down from Sh.534. the data goes ahead to reveal that homes and businesses in the country consume a total of about 800 million kWh of electricity every month.

Read: Kenya Power to Start Providing Internet Services in December

Power prices have a direct bearing on inflation which stood at 6.39 per cent last month. Power bills at the same time come loaded with an inflation charge that currently stands at Sh0.29 per unit and is usually adjusted every six months or twice a year.

The energy regulator just recently stated that a restricted electricity transmission capacity had curbed supply of increased cheaper hydro power and geothermal energy to the national grid.

The firm went ahead to disclose that there was excess power in the country but the problem was that some plants could not fully generate fully due to shortages in the transmission lines, adding that this was the reason that shortened evacuation of maximum power from geothermal and hydro.

Kenya Power was therefore forced to continue buying expensive diesel-fired electricity for onward sale to consumers despite the recent increase in KenGen’s cheaper hydro-power and geothermal energy capacity.