Last Updated 13 years ago by Kenya Engineer
The increase of fuel prices and a higher forex charge will soon see to Kenya’s electricity consumers paying more than what they have been paying.
The forex charge went up to Sh1.69 per KWh in March from February’s Sh1.04, while the fuel adjustment cost went up to Sh6.21 from Sh5.38. This means an increase in the cost of electricity for 50 units or KWh from an average of Sh564 in February to Sh638 in March, representing a 13.2 per cent increase.
The cost of fuel was revised upwards by the Energy Regulatory Commission (ERC) on March 14, with the price of diesel going up by Sh2.27 a litre. This was attributed to a weak shilling during the December/January imports window, coupled with an increase in crude oil prices.
The monthly cost of electricity had reduced marginally since December, following optimum power generation from hydro sources, which reduced reliance on thermal electricity generation.
Kenya’s interconnected installed capacity stood at 1,672MW in January, of which 120MW is from the expensive emergency thermal power. A further 1,248MW is projected to be injected into the grid by 2015, from both state-owned and independent thermal power producers.
Despite the short-term reprieve expected with the rainfall, the long-term picture is less enticing for industries and home users with more thermal generators coming on-stream and Kenya Power pushing for a tariff review.
Another upward review of the fixed rate would be effected on July 1 to Sh250 and later to Sh300 in 2015.
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