Many individuals have been raising concerns about the billing system of the Kenya Power, and although most of them pay for tokens, they hardly know what the components of the bill are.
Here is a closer look at the different contents of your electricity bill and what each component covers.
- Balance brought forward – This refers to your previous bill balance. If it’s already been settled, that payment is reflected here
- Fixed Charge – This the fee charged for the service. It foots costs incurred in the electricity distribution, vending and billing process. The current fixed standing charges price is 150 shillings.
- Consumption – This contains the cost of electricity you have used over the billing period, which is usually a month. The amount varies. For the 50 units of power consumed in a month, KPLC charges a low-price rate. But when monthly units exceed 51 units, the total cost of power will increase and users consuming more than 1500 units in a month incur even higher costs of power and are all treated as commercial clients.
- Fuel Cost Charge (FCC) – The payment for electricity generated from thermal power plants is the FCC. The cost varies monthly depending on the quantity of electricity generated in the month and the cost of fuel used. This money is collected by KPLC and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers.
- Foreign Exchange Rate Fluctuation Adjustment (FERFA) – Depending on dynamics of the foreign currencies against the Kenyan Shilling for expenditures on power sector projects funded in these currencies (e.g. project loan repayments).
- Inflation Adjustment (IA) – This cost is subject to adjustment every six months. It varies according to the domestic and international economic inflation.
- Water and Resources Management Authority (WARMA) – This is a levy currently set at 0.05 cents per kilowatt-hour and is passed to the Water Resource Management Authority (WARMA) for hydro-power generation. It is banked on the amount of hydro-generated electricity. In the pre-paid token receipt WARMA levy is combined with the ERC levy
- Energy Regulatory Commission levy (ERC) – Passed to the Energy Regulatory Commission (ERC) to cover its operational costs. Currently, the cost is at 3 cents per kilowatt-hour.
- REP Levy – Passed to the Rural Electrification Authority (REA) for implementation of rural electrification projects. It is a 5 percent levy on the cost of the units of power consumed by a customer.
- VAT – Is currently set at 16 percent and is applicable to Fixed Charge, Consumption, Fuel Cost Charge, and Forex Adjustment.
