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ERC Scraps Ksh 150 Fixed Charge on Electricity: Is There Something To Smile About?

BY Soko Directory Team · July 31, 2018 05:07 am

Kenyans will have something to smile about as the month of August kicks in following Energy Regulatory Commission’s decision to do away with the 150 shillings fixed charge on electricity.

Kenya Power and Lighting Company had applied to the ERC for the fixed charge to be moved from 150 shillings to 200 shillings, something that would have seen Kenyans pay through the nose for electricity bills.

ERC said that the government had decided to scrap the fee to help low-cost consumers, estimated at 3.7 million to enjoy electricity.

According to the new tariffs, domestic consumers whose consumption is 10 units and below will see their bills drop by between 26 and 82 percent.

Commercial and industrial consumers will see their bill drop by an average of 4.4 percent in addition to the 50 percent discount in time of use tariffs.

Initially, consumers who used 15Kwh paid a fixed charge of 150 shillings and thereafter charged 2.50 shillings per unit. In the new tariff, they will now pay 180 shillings with a unit cost 12 shillings. A consumer using 50 units per month will be charged 16.50 shillings per unit as compared to 2.50 shillings per unit plus the 150 shillings fixed charge.

However, Kenyans feel that the new tariffs have made things even worse by increasing the cost with the commission hiding behind the scrapping of 150 shillings fixed charge.

Here is a statement from Energy Regulatory Commission (ERC):

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