The Energy and Petroleum Regulatory Authority (Epra) has announced the reduction, primarily attributed to a decrease in the fuel energy charge and foreign exchange rate fluctuation adjustment. This development translates to lower power bills for this month for the much pressed Kenyans who have been experiencing the hardships left, right and centre.
Previously the charge was set at Kes4.49 per unit, the fuel energy charge has now been lowered to Kes4.02, while the foreign exchange rate fluctuation adjustment sees a decline from Kes2.06 to Kes1.75 per unit.
This means the ordinary domestic customers paying Kes28 per kilowatt-hour (Kwh) will enjoy a reduced rate of Kes27 per unit this month. The fuel energy charge is collected by Kenya Power and later on reimbursed to the different power producers for thermal electricity generation.
The shift comes as Kenya is a positive step towards transitioning from expensive thermal power sources to more cost-effective options such as hydropower imports and geothermal power.
The country has been seeing retirement of multiple thermal power plants across the country whose contracts are set to expire soon in the year. Kipevu I and Muhoroni Gas Turbine are among the thermal plants that won’t have their contracts among others. This will pave the way for increased reliance on renewable energy, further driving down prices for consumers.