Kenya Power pushing to increase cost of electricity by Sh2.50 for consumers of less than 100 kW

Kenya Power & Lighting Plc is seeking to increase the cost of electricity for consumers who use less than 100 kilowatts by Sh2.50 per kilowatt.

This will see households that use 50 units of electricity pay Sh145 more for the power. Currently the units cost Sh816 but with the proposal the cost will rise to Sh961.

In a letter to the Energy and Petroleum Regulatory Authority (EPRA), Kenya Power argued that the increase is necessary to ensure the company remains in operation.

Kenya Power pushing to increase cost of electricity by Sh2.50 per kilowatt for consumers who use less than 100 kilowatts ece-auto-gen

"Kenya Power assumes that the Retail Tariffs Application to adjust non-fuel base tariffs shall be approved in its entirety as the company may face operational challenges if review is not granted.

"The company may become financially unviable since its required continued improvement in service needs substantial investment," the letter by Kenya Power reads in part.

EPRA Director-General Pavel Oimeke confirmed that the regulator had received Kenya Power's request, however, no approvals have been issued to allow for consultations.

Kenya Power cutting costs

New Kenya Power CEO Bernard Ngugi has been making tough changes within the company in a bid to increase the institution's profitability.

"My immediate focus is to lead the Company towards improved profitability while ensuring the business fulfills its socio-economic purpose. This will be achieved by implementing our 5 Year Strategic Plan that broadly aims at delivering excellent customer service and ensuring our business sustainability," Ngugi stated when he accepted the board's appointment.

Kenya Power CEO Bernard Ngugi. Kenya Power pushing to increase cost of electricity by Sh2.50 per kilowatt for consumers who use less than 100 kilowatts Pulse Live Kenya

One of the measures taken so far has been an immediate order to withdraw provision of afternoon tea at the Kenya Power offices.