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January power Prices Jump 16.5% On Fuel , Forex Charges

 

January power Prices Jump 16.5% On Fuel , Forex Charges.

 

Kenyans will pay as much as 16.5 percent more in electricity prices this month after the energy regulator raised fuel and foreign exchange charges on the commodity in what is set to slow down the easing of the cost of living recorded in recent months.

The Energy and Petroleum Regulatory Authority (Epra) in its latest monthly power prices review this week raised the energy charge by 8.7 percent to Sh4.33 per unit up from Sh3.98 last month.

The higher energy charge signals an increase in output of expensive thermal electricity last month.

The energy charge is collected by Kenya Power on behalf of thermal power generators to cover for their fuel costs. It also supports off-grid power stations that serve far-flung areas that are not connected to the grid.

The energy regulator also increased the foreign exchange rate fluctuation adjustment (Ferfa) charge by 103.7 percent to a new record high of Sh6.46 per unit up from the previous record of Sh3.17 set in last month’s review.

The higher charge is informed by the continued depreciation of the Kenyan shilling against the US dollar last month, which continues to raise the costs incurred by Kenya Power to purchase electricity from generators as well as service its dollar-denominated debt.

An analysis by Nation shows that lifeline customers — those who on average consume less than 30 units monthly — will see an increase of 16.5 percent in their bills this month.

Small commercial customers will incur an increase of about 16.6 percent, while domestic ordinary customers and electric vehicles charging firms will shoulder an increase of 13.4 percent and 13.8 percent respectively.

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