Energy Regulatory Commission Scraps Fixed Charge for Power Consumers

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The Energy Regulatory Commission of Kenya (ERC) has removed all fixed charges for all consumer categories.

This comes as a welcome reprieve for Kenyans who have been complaining of Kenya Power’s ambiguous and extortionist pricing of power.

Kenyans have been paying a standard monthly fixed charge of Kshs. 150, irrespective of whether one used power in that month or not.

A statement from ERC read in part:

To ensure that there’s equity and consumers pay for power only when they consume, all fixed charges for all foxed charges for all consumer categories have been removed. This is meant to reduce the many cost items in the customer bills and simplify understanding of the bills.

The overall unit cost of power has thus been reduced from Kshs. 17.77/KWh in 2017/2018 to Kshs. 16.64/KWh in 2018/2019. This represents a 6 percent reduction in overall costs.

The power cost for domestic consumers has been reduced by 36 percent.

Other than the fixed charge, Kenya Power electricity consumers are burdened with a bevy of other charges including fuel charge, inflation adjustment, demand charge, foreign exchange fluctuation adjustment, tax for value of electricity consumed, Rural Electrification Programme levy and ERC levy.

ERC has stated that approved retail tariffs are effective from 1st July 2018.

Update:

Here’s ERC’s tabular representation of the new tariffs.

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