The Lower Eastern Times Opening The Third Eye
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Electricity consumers are poised to experience a reduction in their monthly bills following the recent revision by the Energy and Petroleum Regulatory Authority (Epra), resulting in a decrease in power prices by an average of 9.3%.
For domestic customers accustomed to paying Sh32 per kilowatt-hour (kWh), the new rate will be Sh29 per unit, effective from this month onward.
The adjusted power prices came into effect on Thursday, reflecting a reduction in the Fuel Energy Cost (FEC) from Sh4.33 per unit to Sh4.14, as well as a decrease in the foreign exchange rate fluctuation adjustment (Ferfa) from Sh6.46 per unit to Sh3.21.
Epra attributed the downward adjustment to decreased foreign currency repayments for power purchases made by Kenya Power in the preceding month. Typically, any forex losses incurred by the company in repaying power costs in foreign currency are recuperated from consumers in the subsequent billing cycle.
Daniel Kiptoo, the Director-General of Epra, noted, “This is due to a significant reduction in the forex adjustment on account of a decrease in the total foreign currency exchange payments made in January 2023.”
This reduction comes as a relief to millions of consumers who experienced a substantial increase in power prices, rising by as much as 17.3% in January. The surge was primarily driven by the settlement of outstanding power purchase costs amounting to billions of shillings by Kenya Power.
These repayments, made predominantly in US dollars, euros, British pounds, and Indian rupees, were initiated in November and December. The accumulated debt stemmed from the company’s inability to secure forex from the market due to a shortage, leading to a build-up since March the previous year.
