The energy regulator (ERC) has stated that Kenya Power’s application for a 25 per cent increase in power tariffs, which would result in higher electricity bills, remain suspended as ERC awaits the findings of an independent study it has launched to determine the actual cost of providing power to consumers.
Through a telephone interview with Business Daily, ERC Director General Kaburu Mwirichia said, “ERC is commissioning the cost-of-service study to examine in detail the requirement of all utilities to determine how tariffs should be done. We expect to complete in about six months.”
According to ERC, the tariff review is only necessary when additional power output is being added to the grid.
According to the proposed new power tariff, households consuming between 0 units to 50 units will pay KES 3.70 per unit, from Ksh 2.00 per unit. Those who consume between 51 units to 1,500 units will pay KES 11.79 per unit from KES 8.10 per unit. Those who consume above 1,500 Units will pay KES 22 per unit from KES 18.75. The monthly fixed charge—meant to recover costs related to meter reading; billing and accounting will also increase from Sh120 to Sh160.
Kenya Power had in May 2012 sought for the 25 per cent power tariff adjustment, but the government suspended the application, cushioning Kenyans at the time. Treasury had since supported the increase pending ERC approval.
The decision to increase power tariffs which will subsequently result in higher electricity bills will be known in about six months time.