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Why you will pay nearly double in Kenya Power bills starting 2018

Price of electricity tokens to be affected too

The rise in electricity costs was effected after the power company backdated Sh8.1 billion charges that were not charged last year.

Kenya Power normally charges customers an extra fuel that is incurred when it uses diesel generator. Their Financial statement for year ended June 2017 showed that fuel cost went high as a result of the severe drought last year which adversely affected hydropower production.

The energy company, however, did not immediately pass on the costs to consumers in 2017 for fear of angering Kenyans during an election year.

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“There were delayed fuel cost recoveries for the year ended June 2017 (partial fuel cost recovery) in support of the government’s goal of stabilising electricity costs,” Kenya Power was quoted by the Business Daily.

On a normal month, Kenya Power charges a fuel levy of Sh2.85 per kilowatt hour (kWh) but the backdating charges has since it increase to a high of Sh4.35 per unit in December and is expected to go even further.

This explains why consumers have been receiving less number of electricity in the past three months.

About Sh2 billion has been recovered so far, leaving out Sh8.1 billion that will be passed on to consumers in monthly invoices.

The development now puts a dent on the Jubilee government's promise to offer Kenyans cheaper power.

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