Kenya Power Seeks Regulator Nod to Raise Tariffs by 117%
Nearly all the electricity users across categories in Kenya will be paying more for every unit of electricity they consume if new proposals from the utility company are passed.
Kenya Power has requested the Energy and Petroleum Regulatory Authority (EPRA) to approve their proposed tariffs to make domestic consumers pay KSh14 per kWh for up to 30 kilowatts of power. At the same time, those exceeding 30kWh per month expected KSh21.68/kWh, a figure set to drop to KSh20.61 in July 2024.
“The rationale of this Retail Tariff Review is to incorporate change in Electricity Sub-sector cost structure and update key assumption with an aim of providing adequate sector revenue requirements,” EPRA said in a call for public memoranda.
Pursuant to section 11(c) of the Energy Act, 2019, @EPRA_Ke is mandated to set, review and adjust electric power tariffs and tariff structures. @KenyaPower on 31st October 2022 submitted the proposed application to @EPRA_Ke that will be applicable 2022/23 to 2025/26. ^BO pic.twitter.com/XNakpL3v79
— Energy and Petroleum Regulatory Authority (@EPRA_Ke) January 25, 2023
Currently, domestic electricity consumers pay KSh10 per kwh for using between 0 to 100 kilowatts(kw), with those consuming upwards of 100kWh paying KSh15.80 per kilowatt.
In the proposed tariffs, domestic consumers will pay KSh14 per kWh for up to 30 kilowatts of power, while those exceeding 30kWh per month expected to pay KSh21.68/kWh, a figure which is set to drop to KSh20.61 in July 2024.
Small businesses currently pay KSh10 per kwh for using between 0 to 100 kilowatt will pay KSh15.60 for usage upwards of 100 kilowatt.
Small commercial electricity
In the new tariffs, the small commercial electricity users will pay KSh14 per kWh for up to 30 kilowatts. For those more than 30 kilowatts, the utility firm proposes KSh21.08 per kWh in January 2023, an amount projected to increase to Sh20.88 in July before a marginal drop to Sh20.07 in July 2024.
Large power consumers categorized as Commercial Industrial I will also pay more with the cost per kWh set to increase from KSh12 to KSh16.48.
Commercial Industrial II
Under Commercial Industrial II, consumers will pay Sh15.02 per kWh from Sh10.09, while users under Commercial Industrial III will pay Sh14.44 from Sh10.50.
For firms falling under the Commercial Industrial V, which comprises a few but heavy users, the cost per kWh will increase from KSh10.10 to KSh13.90.
Small commercial users
Under the tariff, small commercial users whose bulk use ranges between 1000 to 15,000 kilowatt hours will pay less, while large businesses whose bulk use is above 15,000 kilowatts will pay more as they are heavier power users.
Commercial/Industrial Customer VI and VII
Users under Commercial/Industrial Customer VI and VII, which will cater for customers metered at 220kV and customers in Olkaria-Kedong Special Economic Zone in Naivasha, respectively, will pay KSh12 per kWh.
Under street lighting, the cost of power per kWh will increase to KSh11 from KSh7.50.
Kenya Power has proposed a special E-mobility tariff of between 200-15,000 kilowatts that will cost KSh17/kWh to influence demand and growth of the sector.