Kenyans' July electricity bills to drop by 8%, saving consumers USD2.75m

Energy Regulatory Commission (ERC) has announced that consumer power bill in the country is set to drop by 8% in tariffs from next month.
Fuel levy in June electricity bills, fell from May’s due to increased use of cheaper hydro power that cut the share of costlier diesel generators.
Power bills for homes that consume 200 units per month increased by 15% in the past year from US Sh3,633 ($36.33) in May last year to Sh4,178 (US $41.78) same month this year.

It is good news for Kenyan consumers as their electricity bill is set to drop within the next 48 hours.

Energy Regulatory Commission (ERC) has announced that consumer power bill in the country is set to drop by 8% in tariffs from next month.

According to ERC director-general Pavel Oimeke, a new power tariff structure with lower charges is ready and will cut power costs upon implementation from July 1.

The tariff review comes after Kenya Power submitted an application at the ERC, seeking higher tariffs but the government declined, instead promising customers lower bills.

Mr Pavel said that the energy regulator was working with Kenya Power to ensure that consumers are not charged fixed costs which is payable whether one uses power or not, currently, domestic consumers pay a fixed charge of US $1.5.

The rise in electricity bills had been blamed on high fuel surcharge billed on customers.

Low water levels in the hydroelectric dams, saw Kenya Power switch on its diesel-powered generators which then spiked the cost of electricity due to rise in fuel surcharge.

Fuel levy in June electricity bills, fell from May’s due to increased use of cheaper hydro power that cut the share of costlier diesel generators.

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Power bills for homes that consume 200 units per month increased by 15% in the past year from US Sh3,633 ($36.33) in May last year to Sh4,178 (US $41.78) same month this year.

Apart from fuel levy, forex charge, which compensates for foreign currency costs, including loans that power producers have in their books, has dropped to US $0.011 this month from US $0.012 in May.

The drop in electricity costs will see consumers make an overall saving of about Sh275m (US $2.75m) on their power bills, based on the monthly consumption of about 890 million kWh.