The Energy and Petroleum Regulatory Authority (EPRA) has announced new adjustments to electricity billing following the publication of revised tariffs on Friday, February 13.
The revisions primarily affect the fuel energy cost charge, the foreign exchange adjustment, and the Water Resource Management Authority (WRMA) levy.
While such tariff reviews are periodically implemented, the latest adjustments carry significant financial implications for Kenyan households already facing high living costs.
Key Changes
1. Foreign Exchange Adjustment
The foreign exchange adjustment has been set at 120.61 cents per kilowatt-hour (Ksh1.2061 per unit consumed).
This charge reflects the electricity sector’s reliance on foreign currency, as some independent power producers are paid in US dollars and fuel for thermal plants is imported.
Recent data shows foreign exchange losses of approximately Ksh1.31 billion, costs that are now being passed on to consumers.
2. Fuel Energy Cost Charge
The Fuel Energy Cost Charge has been revised to Ksh3.10 per kilowatt-hour. This fee covers the cost of running thermal power plants that use diesel or heavy fuel oil.
Although Kenya generates most of its electricity from geothermal and hydropower sources, increased reliance on thermal generation during dry seasons or periods of high demand pushes costs upward.
3. WRMA Levy
The WRMA levy has been adjusted to 1.21 cents per kilowatt-hour (Ksh0.0121 per unit). This charge supports water resource management and conservation efforts, which are essential for sustaining hydropower production.
Impact on Households
Combined, the foreign exchange and fuel charges alone could add nearly Ksh1,300 to the monthly bill of a household consuming 300 units of electricity, before factoring in other existing levies and taxes.
The revised tariffs highlight ongoing pressures within Kenya’s energy sector and reflect broader economic challenges affecting electricity consumers across the country.
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