Kenya: Epra Says Proposed Power Tariffs Not a Finality

3 February 2023

Kisumu — The Energy and Petroleum Regulatory Authority (EPRA) has assured the public that the proposed increment in power tariffs by Kenya Power is not a finality.

EPRA Director General Daniel Kiptoo says Kenyans will have a say in the planned increment.

"It is not a done deal, if it was a finality, then we would not be going around the country to engage the public," he said

Kiptoo and Kenya Power management were in Kisumu meeting different stakeholders to listen to their submissions before the power tariff increment can be effected.

In the proposed tariffs, domestic users and small businesses are expected to face the highest increase as Kenya Power seeks to revise the Life-Line consumption band for both from the current 100 kilowatt-hour(kWh) per month to 30kWh per month.

Currently, domestic consumers of electricity pay Sh10 per kWh for using between 0 to 100 units of power(kWh) with those consuming upwards of 100 units paying Sh15.80.

In the new tariffs, domestic consumers will pay Sh14 per kWh for up to 30 units of power while those exceeding 30kWh per month are expected to pay Sh21.68/kWh, a figure which is set to drop to Sh20.61 in July 2024.

Small businesses currently pay Sh10 per kWh for using between 0 to 100 units and pay Sh15.60 for usage upwards of 100 units.

In the new tariffs, the small commercial users of electricity will pay Sh14 per kWh for up to 30 kWh.

Kiptoo told the stakeholders in the public forum that the application by Kenya Power will be subjected to public scrutiny, with a view of cushioning Kenyans from higher tariffs.

"As the regulator, we are going round the country, collecting views which will allow us to come up with a report while putting the interest of Kenyans at heart," he said.

However, Kenya Power General Manager Regional Coordination Peter Njenga says their intention to increase power tariffs is borne out of revenue requirements from the sector players.

"We have received the revenue requirements from all the other sector players, KenGen, independent power producers, Ketraco amongst other players," he said.

Njenga says the revenue requirements are what determine the rate Kenya Power charges their customers.

He noted that what they charge their customers has to meet the cost of generation, transmission, distribution and retail.

Njenga went further to assure Kenyans that they will see a very minimal increment noting that their customers are categorized in different levels.

"The domestic customers will get an increment of 13 percent for the lifeline customers and ordinary customers will get a 20 percent increment," he said.

He announced that the Water Resources Authority (WRA) has also proposed an increase to push up their levy, noting that the Kenya Power tariff increment has incorporated what is being demanded by WRA.

During the presentation, the Kenya National Chamber of Commerce (KNCCI) Kisumu Branch Chairman Israel Agina, says the increment will have a huge impact on struggling Kenyans.

"The upward review of these tariffs will cost our people, down from small business people to big industries, the government should work on modalities to lower the cost of power," said Agina.

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