Kenyans could pay more for electricity in the coming weeks, even as Energy and Petroleum Regulatory Authority (EPRA) approves an application by Kenya Power to increase consumption charges by 20 percent.
According to reports by Business Daily, the changes are awaiting a public participation phase before they are effected through a Kenya Gazette announcement.
“We have examined and approved the application by Kenya Power which will now be published for stakeholder consultations. The difference between what was applied for and what we have approved is not much. This could have been completed earlier but the surge in Covid-19 cases has slowed the progress recently,” said an EPRA source quoted by the publication.
If effected, the consumption charge for usage of less than 100 kilowatts per month will hike to Ksh12.50 a unit, from the current Ksh10. That for consumers using over above 100 units of power will shift to Ksh19.53 a unit from the current Ksh15.80.
The rates were reviewed downwards in 2018 following a Presidential order, and Kenya Power now argues that the review has expired. They want the review done upwards to try and rescue their dwindling fortunes. They have issued a profit warning for three consecutive years.
The law requires that a review be done every three years, but the sequence has not been strictly adhered to.
“Kenya Power has submitted an addendum to reflect the current developments in the energy sector. EPRA is reviewing the application before it is submitted to the public for stakeholder comments,” EPRA said.
In 2019, Kenya Power recorded a profit of Ksh262 million, the worst in 16 years.