CLARIFICATION

We have not approved higher power rates - regulator

The tariff application by the Kenya Power and Lighting Company is still under the Authority's review and no approvals have been granted

In Summary
  • The energy regulator said this in a statement made to clarify news published by some media outlets, that suggested that the Authority has approved higher electricity prices.
  • Electricity distributor, Kenya Power wants to increase the consumption charge for usage of less than 100 kilowatts per month to Sh12.50 a unit.
EPRA Director General Pavel Oimeke.
EPRA Director General Pavel Oimeke.
Image: COURTESY

Power tariffs have not been increased and electricity prices will remain the same, the Energy and Petroleum Regulatory Authority(EPRA) has said.

The regulator said this in a statement made to clarify news published by the Business Daily, indicating that the authority has approved higher electricity prices.

“EPRA informs the public that the tariff application by the Kenya Power and Lighting Company is still under the authority's review and no approvals have been granted,” said EPRA"S Director-General, Pavel Oimeke in a statement.

 

The regulator assured consumers that once the internal review on Kenya Power's tarriff application has been completed, they will undertake stakeholder engagements and public hearings before the final approval is granted.

According to the newspaper article, Kenya Power wants to increase the consumption charge for usage of less than 100 kilowatts per month to Sh12.50 a unit, up from the current Sh10.

The charge for consuming above 100 units will rise to Sh19.53 a unit from the current Sh15.80 in the event that the regulator approves the proposed tariffs.

Kenya Power holds that that the higher tariffs are justified because the present electricity prices lapsed last year.

In 2018, EPRA reduced the retail prices of electricity after an order from President Uhuru Kenyatta in the wake of widespread complaints from domestic customers and small businesses over a costly tariff introduced last July.

The tariff almost doubled the monthly bills for higher-income households, triggering the complaints.

EPRA cut the tariff from November 2018 to July 2019 to Sh10 per kilowatt hour from Sh15.80 for customers who use below 100 kilowatts per month.

 

Kenya Power, citing the expiry of the temporary tariffs, has pushed for a review of the charges upwards and try to reverse its falling earnings, which has seen it issue a profit warning this year.

The firm reported a net profit for the year ended June 30, of Sh262 million, a drop from Sh3.3 billion the previous year.

This, as investors continue to miss out on dividends as the company has already issued a profit warning for the year ended June 2020.

The law provides that electricity tariffs be reviewed every three years, but the timetable has been unpredictable as the regulator has often delayed or amended the rates

EPRA last month said that the utility firm had submitted fresh information to support its push for tariff adjustments concluding the long wait for tariff review.