JNHPP imalizike mapema tuwaokoe hawa ndugu zetu wanateseka sana hadi huruma.
Relief marked by Kenyans at the pump on Thursday has been short-lived with October electricity costs set to go up to stick above the already record highs.
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Suffering for Kenyans as Electricity Cost Rises Despite Reduced Fuel Prices
Citizen TV
Oct 15, 2021 6:45 AM
In Summary
According to new tariffs for the month of October gazetted on Friday by the Energy and Petroleum Regulatory Authority (EPRA), the fuel cost charge (FCC) will shoot to Ksh.3.97 for every unit of power consumed compared to Ksh.3.88 in September.
Meanwhile, the foreign exchange adjustment levy has risen to Ksh.1.04 from a lower 76 cents last month.
The higher fuel cost charge reflects the impact of greater landed costs for petroleum products from which heavy diesel oil is deployed in electricity generation from thermal sources such as generators.
The relief marked by Kenyans at the pump on Thursday has been short-lived with October electricity costs set to go up to stick above the already record highs.
According to new tariffs for the month of October gazetted on Friday by the Energy and Petroleum Regulatory Authority (EPRA), the fuel cost charge (FCC) will shoot to Ksh.3.97 for every unit of power consumed compared to Ksh.3.88 in September.
Meanwhile, the foreign exchange adjustment levy has risen to Ksh.1.04 from a lower 76 cents last month.
The water resource management authority levy is however unchanged at a mean two cents, the same as in September.
The higher fuel cost charge reflects the impact of greater landed costs for petroleum products from which heavy diesel oil is deployed in electricity generation from thermal sources such as generators.
The higher FX adjustment charge is on its part a reflection of weakened local currency with the shilling trading at a new Ksh.111 low against the dollar this week.
The shilling has lost about 1.5 per cent of its value this year against the US dollar.
Combined, the greater tariffs will send the cost of electricity beyond Ksh.25 per kilowatt hour in the October billing cycle.
This will be the highest cost of electricity in more than three years since early 2018 negating any temporal relief from cheaper fuel or cooling inflation this month.
Higher electricity costs at this time are however ironic as they come on the backdrop of reforms to the energy sector to include an audit of the electricity costing formula and that of utility firm Kenya Power.
Put together, the proposals desire to ambitiously bring down the cost of electricity to around Ksh.16 per unit/kWh by the end of this year