Consumers face another surge in electricity costs

Consumers face higher charges for electricity as inflation and a weak shilling affect power bills from this month.

The Energy Regulatory Commission (ERC) has increased the levy charged on forex to 30 cents per kWh from the 0.38 cents charged last month while the inflation adjustment charge has doubled to 0.18 cents from 0.9 cents in June.

The rate of inflation soared to 7.39 per cent in June compared to 7.30 per cent in May with the shilling also depreciating against most major currencies except the Tanzanian shilling.

The new levies come hot on the heels of recent upward review of electricity tariffs that saw fixed charges go up from this month to Sh150 from Sh120.

Also raised from the beginning of this month is the energy charge per kWh, which has shot to Sh13.68 from Sh11.62 for those consuming more than 50 units.

The adjustments represent the second phase of billing that was implemented on July 1 by Kenya Power, after maintaining the same rates for the last six years.

The review also comes just weeks after the energy regulator raised fuel cost adjustment charge, which varies every month depending on thermal power generation.

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In May, it rose to a two-year high of Sh7.22 due to low water levels. Households consuming 200 kilowatt hours (kWh) of electricity last month will, for instance, pay at least Sh4,712.50, up from the 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 this month, up from the Sh12 they have been paying since December.

Consumer Federation of Kenya (Cofek) says the current increase in the cost of electricity is getting out of control for domestic consumers who are already overburdened by the high cost of living.

Cofek secretary-general Stephen Mutoro said the increase would see the cost of fast-moving goods go up significantly as the price of these items are determined by the cost of power.

“The government does not have goodwill towards its citizens because by increasing the cost of power as it has done, it simply means that it is denying ordinary consumers the right to access basic goods,” said Mr Mutoro. 

Prices of food, which is the second in the list of items that exerts pressure on inflation, have also been on the rise according to the Kenya National Bureau of Statistics, which says the costs of staples such as maize, have increased by double digits over the past year.