Kenyans will have to pay more for electricity as EPRA, the energy sector regulator approved higher tariffs by Kenya Power, which targets to raise more money to fund the upgrade of its ageing distribution systems.
The energy sector regulator has raised base power prices to Sh12.22 per unit from Sh10 for those consuming below 30 units, a 22.2 per cent jump.
It has put further pressure on consumers using between 30-100 units by increasing the cost from Sh10 to Sh16.3, a 63 per cent increase, effective April.
In a move that EPRA said it was aimed at cushioning low income consumers, the lifeline tariff band that describes the lowest consumer bracket was lowered from 100kwh to 30kwh so as to cushion more vulnerable consumers.
“With a view of meeting the social policy objective, the Lifeline Tariff band has been reduced from 100-kilowatt hour(kWh) per month to 30kWh, to cushion and address the needs of low-income households in the society,” Epra said.
“Accordingly, these consumers will be cross-subsidised by the other consumer categories in order to protect the vulnerable members of society. Despite this reduction, the Lifeline Tariff band will account for 6.3 million customers, representing 71.31 per cent of the total number of consumers. This covers a majority of the vulnerable sector base also known as ‘Hustlers’,” the regulator added.
The newly approved tariffs will see Kenya Power net Sh177 billion in revenues in the current 2022/2023 financial year — some Sh18 billion lower compared to the Sh195 billion the utility firm had targeted in its application to Epra.
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