The Energy and Petroleum Regulatory Authority (Epra) has raised electricity prices by 5.2 percent, Nation reported.
Notably, this is the third time the energy regulator is increasing electricity prices in four months.
Epra raised the fuel cost charge from Ksh 6.36 per unit to Ksh 7.12 per unit, and the foreign exchange rate fluctuation adjustment (Ferfa) from Ksh 1.41 to Ksh 2.07 per unit.
The new development is contained in a gazette notice signed by Epra Director-General Daniel Kiptoo.
“Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2018, notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of plus 712 Kenya cents per kWh for all meter readings to be taken in December 2022,” read the notice.
The new adjustments cater to fuel energy and foreign exchange fluctuation costs incurred by Kenya Power.
As earlier reported on WoK, Kenya Power is seeking approval to bill some of its customers in dollars, euros and other foreign currencies.
The move comes amid a looming shortage of forex in the domestic market and the exposure to the depreciating shilling.
The electricity distributor is working with Epra seeking the base rate to be used in tariff determination for those paying in foreign currency.
According to Stephen Vikiru, the general manager in charge of finance at Kenya Power, the new move will enable them generate a reliable source of foreign currency to meet its obligations.
“We want to look at our customers whose income is in foreign currencies such as the export processing zones, foreign missions, and the horticulture industry and engage them to be able to pay us in hard currency
“The forex problem has been two-fold. The first is the fluctuation of the rate. Right now, if you go to market, you are buying a dollar at 126 to the Kenya Shilling which is a significant spread from the official rate
”The second is the availability of foreign currency. Even with that spread, you are not able to get foreign currency,” Stephen Vikiru, the general manager in charge of finance at Kenya Power said.
