Kenyans will have to dig deeper into their pockets this June after the Energy and Petroleum Regulatory Authority (EPRA) introduced new monthly adjustments that are set to push up electricity costs.
In a notice published on Friday, June 19, the regulator announced a foreign exchange fluctuation charge of 71.54 cents per kilowatt-hour, a fuel energy cost charge of 314 cents per kilowatt-hour, and a Water Resource Management Authority levy of 1.42 cents per kilowatt-hour.
All these changes will apply to electricity consumed during meter readings taken this month, meaning that households and businesses across the country will see a noticeable jump in their power bills.
The fuel charge is the heaviest hitter in these new adjustments, adding a whopping Ksh3.14 for every unit of power consumed. When you combine that with the forex adjustment of Ksh0.72 and the WRMA levy, the total additional cost comes to Ksh3.87 per unit on June electricity bills.
While each figure might look small on paper, together they will add a significant weight to the monthly expenses of ordinary Kenyans who are already feeling the heat from the high cost of living.
According to EPRA, consumers will be forced to absorb about Ksh779 million in foreign exchange losses that accumulated across the electricity sector over the past month. Independent Power Producers took the biggest hit, accounting for Ksh663 million of these losses, which is roughly 85 per cent of the total adjustment.
Meanwhile, Kenya Power recorded foreign exchange losses of Ksh85 million, while KenGen reported losses of Ksh31 million. The forex adjustment is necessary because most power purchase agreements are signed in foreign currencies, especially the US dollar, so whenever the shilling wobbles against the dollar, the cost is always passed down to the end-user.
On the fuel side, the charge is determined by the cost of fuel used by thermal power plants and imported electricity. The latest increase has been driven by higher fuel expenses at several diesel-powered stations, which have pushed up the overall cost of generation.
At the same time, consumers will continue paying the WRMA levy of 1.42 cents per kilowatt-hour, which is calculated from electricity generated by major hydropower stations including Gitaru, Kamburu, Kiambere, Kindaruma, Masinga, Turkwel and Sondu Miriu.
Even though each of these adjustments seems small in isolation, their combined effect means that many families will have to plan more carefully to keep their lights on this June.
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