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November 22, 2018

Stop these tricks, Kenyans want affordable electricity

The Kenya power symbol
The Kenya power symbol

The Energy Regulatory Commission (ERC) yesterday scrapped the monthly fixed charge of Sh150 on electricity bills and promised Kenyans cheaper power.

But it was deceitful.

In fact, Kenyans will now pay more than double under the new tariff structure in a classic case of giving with one hand and taking away more with the other.

Under the new rates, customers who purchase up to 10 units will be charged Sh12 per unit. They will pay Sh120 in addition to levies of up to Sh25.50, bringing the total to Sh145.50.

By capping lifeline tariff consumption units at 10kWh per billing from 50kWh, ERC technically excluded most households in the country from benefiting from the new tariff structure.

According to Kenya National Bureau of Statistics (KNBS), an average household consumes at least 50 units of electricity per month, which falls under 11-50 unit usage bracket. Customers under this segment will have to part with Sh15.80 per unit.

Simple math exposes ERC’s deceit: Previously, customers paid up to Sh500 for 50 units of electricity. This included Sh100 at Sh2.50 per unit, fixed charge of Sh150 and up to Sh250 in levies.

Under the new tariffs, each unit will cost Sh15.80, hence, 50Kwh will cost Sh790 plus Sh125 in fuel cost fees and other levies, which totals at least Sh930. This is Sh430 more compared to previous tariff.

ERC owes Kenyans the truth.

Quote of the Day: “The government solution to a problem is usually as bad as the problem.”

Milton Friedman

The American economist (Nobel Prize Economics 1976) was born on July 31, 1912.

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