Kenyans will pay more for electricity in 2024 after the Energy Petroleum Regulatory Authority (EPRA) allowed the Kenya Power Company to increase the cost of electricity by 16.5%.
The new charges are effective January 2024 and have already affected some consumers who bought electricity tokens over the past week.
The new prices came after EPRA reviewed the energy charge cost - one of the components of a consumer’s electricity bill or calculation of electricity tokens.
The energy charge is collected by Kenya Power on behalf of power generators to cater for their fuel costs in the process of generating electricity. The energy charge stood at Ksh3.98 last year, but has now been reviewed upwards to Ksh4.33 - an 8.7 percentage increase.
EPRA also increased the Foreign Exchange Fluctuation Rate (FERFA) - another major component in the cost of electricity.
The FERFA charge more than doubled, from Ksh3.17 in December 2023 to a record high of Ksh6.46. EPRA cited the continued weakening of the Kenyan shilling against the dollar for the increased cost in the foreign exchange fluctuation rate.
One consumer who spoke to Money254.co.ke noted that she had noticed fewer tokens for the same Ksh500 that she uses to replenish her tokens.
Lat year, Ksh500 gave her 18.8 tokens while a purchase made on Tuesday, January 9, returned 17.75 units. At the same time, the cost incurred under “other charges”rose from Ksh188.2 to 205.72.
The full impact of the changes, however, will vary depending on which of the three power consumption category one falls under.
KPLC categorizes consumers into three groups, starting with low consumers who take up less than 30 units per month. This category will be the most affected by the new charges at 16.5%.
The second category is those who consume between 30 to 100 tokens, while the third category is those who consume over 100 units in a month. Their charges will increase by 13.4 to 13.8%, respectively.
The complete breakdown of the electricity tokens purchased was previously disclosed to consumers, until March 2023 when KPLC introduced a new format for presenting purchased tokens.
Under the new format, the utility company provides the full payment by the consumer, the total units bought, the amount that went to the actual purchase of tokens, and a disclosure on the total amount that went to non-token charges (these costs are summed up as one category of other charges).