Kenya Power has clarified that at least 6.3 million of its domestic customers, primarily low-consuming individuals, will enjoy a 4 percent reduction in their electricity bills starting from April 2023.
This move comes after the submission of a Retail Tariff Application (RTA) for the fourth Tariff Control Period in accordance with Section 165 (3) of the Energy Act, 2019.
The company’s media advisory reveals that 74 percent of domestic customers will benefit from the new tariff rates. Customers under the “Lifeline consuming less than 30 units” category will see their electricity rate per unit decrease from KES 21.99 to KES 21.16. This means that a KES 500 purchase will give them 23.6 units in April, up from 22.7 units currently enabling low-income earners to enjoy affordable access to electricity.
“A lifeline customer (“Hustler”) consuming 1 unit per day ends up paying a total of KES 660 per month at the current (March) tariff rates. However, he/she will pay a reduced bill of KES .635 from April 2023,” Kenya Power stated.
Notably, the company made no mention of how the reduction would be accomplished, even though Energy and Petroleum Regulatory Authority (EPRA) tariffs never showed a decrease.
In addition, EPRA has approved a 4 percent reduction in bills for 53 percent of SME customers and a 2 percent average relief on manufacturers’ bills, also from April 2023. To encourage clean cooking and electric mobility, special tariffs have been introduced, while Bulk Tariffs applicable to SMEs and Commercial and Industrial Customer categories have also been introduced to improve efficiency and customer experience. A Time of Use tariff for SMEs has been introduced at half the energy charge to promote extended business operations.
EPRA’s approved target benchmarks for Kenya Power Limited Company (KPLC) aim to ensure accountability and proper use of resources by KPLC. This provides an incentive for KPLC to improve consistently on power quality and reliability. The street lighting tariff has also been reduced by 9 percent to enhance security and promote the 24-hour economy.
However, not all customers will benefit from the new electricity tariff rates, as those consuming between 30 and 100 units will see an increase from KES 21.99 to KES 26.10 per unit (19 percent increase), and those consuming above 100 units will see an increase from KES 27.92 to KES 31.75 per unit (14 percent increase).
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