•ERC has raised fuel cost charge for March to Sh2.75 per unit up from Sh2.44 in February but lowered forex and Warma rates.
•The Energy regulator did not give reasons for Fuel Cost Charge adjustment in the gazette notice published Friday.
The recent slight increase in fuel prices and persistent dry conditions could force electricity consumers to dig deeper in their pockets.
Already, the Energy Regulatory Commission (ERC) has adjusted Fuel Cost Charge for March to Sh2.75 per unit up from Sh2.44 in February. This will go up if the dryness will lead to a decline in hydro water levels, forcing the government to switch on diesel-fired plants.
However, the Energy regulator did not give reasons for Fuel Cost Charge adjustment in the gazette notice published Friday.
"Pursuant to clause 1 of Part III of the Schedule of Tariffs 2018, notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of plus 275 Kenya cents (Sh2.75) per kWh for all meter readings to be taken in March, 2019,’’ the notice read.
Diesel-generated power, reserved for dry seasons, is very expensive. Power distributor, Kenya Power buys electricity from the thermal producers at an average wholesale price of Sh19.24 ($0.19) per unit, with cost passed to consumers.
The diesel rate is six times more expensive than hydro-power (Sh3 per unit) and three times higher than geothermal energy (Sh8).
On Thursday, ERC announced new fuel prices for the month where a litre of diesel increased by 65 cents to Sh96.61 from Sh95.96.
The commission attributed the hike to an increase in the landed cost of diesel by 2.79 per cent from US$ 546.42 per ton in January to US$ 561.64 per ton in February.
This is going to hit domestic consumers who last month saw a spike in power bills after being categorised in two tariffs, Domestic Lifeline and Domestic Ordinary.
The Lifeline category comprises of those who consume less than 100 units a month averaged for three months, while Ordinary consist of those who consume more than 100 units over the same period.
Those in Domestic Lifeline are charged Sh10 per unit while those in Domestic Ordinary part with Sh15 per unit.
In October, ERC had the Domestic Customer category by increasing the Lifeline threshold from initial 10kWh to 100kWh and further reduced their charge rate from Sh12/kWh to Sh10/kWh.
This in addition to scrapping fixed charge of Sh150 on all power tariffs.
While consumers will pay more for fuel, ERC has drastically cut on Forex fluctuation charge, perhaps due to shilling stability in the money market.
According to the new charge, consumers will be spared Sh0.54 per unit compared to a deduction of Sh 0.10 per unit in February.
"Pursuant to clause 2 of Part III of the Schedule of Tariffs 2018, notice is given that all prices-for electrical energy Specified in Part II of the said Schedule will be liable to a foreign exchange fluctuation adjustment of minus 5.4 Kenya cents (Sh0.54) per kWh for all meter readings to be taken in March, 2019,’’ ERC said in a notice.
It has also lowered Water Resources Management Authority (Warma) charge to Sh0.16 from Sh0.31.