The price of Kenya Power electricity has dropped by Ksh 3.44 per unit after the latest revision by the Ministry of Energy.
The new deal which took effect on Wednesday, February 7 late at night, was a decision made after the duty was cut by the Energy and Petroleum Regulatory Authority (EPRA).
Why EPRA lowered KPLC tariffs
Alex Wachira, the Energy Principal Secretary, highlighted that the move was a result of a notable drop in the foreign exchange adjustment rate.
“Foreign exchange adjustment dropped from Ksh 6.46 per kilowatt hour to Ksh 3.22 per kilowatt hour owing to a decrease in the total foreign currency exchange payments made in January, ” he said
He added that the latest amendment was also contributed by the slight reduction in the Fuel Energy Cost which decreased by 9 cents.
Other charges that dropped include the Water Resources Management Authority (WRMA) levy, which decreased from KSh 0.0151kWh to KSh 0.0133/kWh.
This is after generation from hydropower plants decreased from 24.66% to 22.80%.
The new revision has caused a rapture to most Kenyans after more than a year of decry following the surge.
In April 2023, the Energy and Petroleum Regulatory Authority (EPRA) ordered an adjustment which increased prices of electricity following the prayer tendered by Kenya Power, saying there was a serious need to amend unit prices to create a net earning of Ksh 184.9 billion in the Financial Year 2023/2024.
According to Daniel Kiptoo, EPRA’s Director-General, Kenya Power had to leverage higher duties to achieve the money needed to repair as well as replacement of old machines and system expansion.
“This will meet energy purchase costs and allow for system expansion, ” he stated.
They also stated that both commercial and industrial consumers had to experience a marginal reduction of Ksh 1.15 per kWh, but households had to be subjected to go through the high cost, saying it was a stimulus tool in the economic activities of the manufacturing industries or companies so that the prices of goods would fall.
The government’s economic advisor David Ndii observed there was a need for an adjustment in the electricity price because the distribution and transmission networks had both shown all signs of tire, calling for replacements.
President Ruto vowed to give a new and improved form of the transmission and distribution network and develop a Liquified Natural Gas (LNG) storage facility in Mombasa, something which he was convinced would held in achieving a drop in the price of electricity.
