Kenya Power is advising consumers against believing that they are saving anything when they make huge payments for their pre-paid meter tokens in bulk.
According to sources at Kenya Power, the pre-paid meter billing is tiered in such a way that from 0 to 50 units are charged at Ksh 2.50 while 51 – 1500 units are more expensive at Ksh 13.68 per unit. Anything above 1500 units is charged at Ksh 21.57 per unit.
This means that it is more expensive to buy higher amounts of units.
Kenya Power explains that this is so because the government subsidised lower end consumers who live in low income areas and are consuming less electricity in their households. They are identified through their consumption and not through their individual meter numbers.
It is cheaper to buy Ksh 2,000 worth of units of electricity in small bits e.g of Ksh 500 than in one tranche of Ksh 15,000. The following is the breakdown illustrating the above for a purchase made in March.
First Ksh 500 allocation will be 32.3 units considering that the fixed charges will be deducted in the first purchase. The first purchase is tiered at Ksh 2.50 per unit as only 32.3 units are being purchased.
The second purchase is going to generate 31.3 units meaning that the 0 – 50 units tier is surpassed. For this, 17.7 units will be bough at Ksh 2.50 per unit while the remaining 13.6 units will be charge at Ksh 13.68 per unit. There will not be any standing charge as illustrated below.
The third purchase in March for Ksh 500 will see the user being allocated 21.2 units which is still within the second tier which is 51 – 1500 units at Ksh 13.68. No fixed charge will be attracted here too.
The last purchase in March at Ksh 500 will result in 21.2 units as the purchased units will still be within the 51 – 1500 tier of Ksh 13.68 per unit. No fixed charge will be paid here too.
A similar purchase on the post-paid tariff would also result in the user getting 106 units.
But if your consumption is 100 or so per month, and you decide to buy 200 units to cover two months, you will not benefit from the first 50 units being charged at a subsidised rate of only Ksh 2.50 per unit. Buying 100 units then waiting another 30 days calendar month to buy another 100 units means that 100 units will be tiered within the Ksh 2.50 per unit bracket.
If you make a single purchase of 200 units, only 50 units will benefit from the subsidised Ksh 2.50 per unit fee while the remaining 150 units will be charged at Ksh 13.68 per unit.
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