Power bills up from Tuesday in tariff review

Consumers will from Tuesday pay higher electricity bills as Kenya Power effects the second phase of a billing structure that will see fixed and energy charges increase for the second time in six years.

The fixed charge for domestic consumers will rise to Sh150 Tuesday from the current Sh120 while the energy charge per kWh will rise to Sh13.68 from Sh11.62 for those consuming more than 50 units of power.

This comes six months after the energy regulator allowed Kenya Power to increase the tariffs by an average of 22 per cent in December.

The review also comes when the fuel cost adjustment charge, which varies every month depending on thermal power generation, last month rose to a two-year high of Sh7.22 due to low water levels.

READ: Power bills shock as new tariffs set to start next month

The tariff review will add to the burden of rising cost of living that has seen inflation breach government targets at 7.39 per cent in June.

Households consuming 200 kilowatt hours (kWh) of electricity last month will, for instance, pay at least Sh4,712.50 up from Sh4,302.30 they would have paid based on the current tariffs, a 10 per cent jump if the variable components remain fairly stable.

Commercial firms consuming up to 15,000 kWh will pay Sh14 in energy charge per kWh from today, up from the current Sh12 they have been paying since December.

Fixed charge is payable regardless of consumption levels while the energy charge accounts for half of the monthly power costs.

The new tariffs will remain in place until July next year when the energy charge is expected to drop marginally. Fixed charge will either remain unchanged or rise further for industrial firms.

Electricity is one of the biggest determinants of inflation after food, making the looming cost escalation significant.