KENYA POWER SEEKS APPROVAL TO INCREASE ELECTRICITY PRICES BY UP TO 78%
Kenya Power Technicians in during routine maintenance
Electricity prices will from April increase by up to 78 percent if the energy sector regulator approves new tariffs from Kenya Power that seek to withdraw the monthly subsidy that cushions poor households.
The utility firm said it is engaging the Energy and Petroleum Regulatory Authority (EPRA) the electricity sector regulator for the first upward review of power prices since 2018, putting further pressure on consumers.
“There is a proposal to revise the Life-Line (subsidy) consumption band for both small commercial and domestic customers from the current 100kWh/month to 30kWh/month,” said Kenya Power.
Besides increasing the base tariff, Kenya Power has reduced the threshold for accessing the monthly power subsidy equivalent to a 24.1 percent discount from 100-kilowatt hours to the proposed 30 units.
The increment will consequently deny millions of households the subsidy they have enjoyed since 2018 as Kenya Power seeks additional resources to upgrade its transmission network and boost profits, which ultimately allow the utility to restart dividends.
“This will align the objectives of the lifeline/social tariff customer category with the correct social class normally defined by the level of income.”
Kenya Power wants to increase the cost of a unit of power for the usage of less than 30 kilowatts per month to Sh28.01 a unit, up from the current Sh20.70, reflecting a growth of 35.3 percent.
The utility firm has for years pushed for a review of the current power tariffs, arguing that its revenue requirements have grown sharply despite income from electricity remaining the same, forcing it to rely on increasing sales.
