NAIROBI, KENYA: Electricity consumers will in the month of April get a slight reprieve with power bills set to come down marginally from previous month’s electricity charges.
Kenya Power HQ
The review follows a shift by Kenya power to increases its reliance on hydro generated electricity away from the expensive thermal generation. This follows heavy rains during the the month that has seen electricity distributorKenya Power reduce the amount of electricity generated using diesel in favour of hydro generated electricity.
In a gazette notice last week Friday, the power firm reduced the fuel charge cost to Sh5.73 per unit of electricity, up from Sh6.21. The company, however, increased the foreign exchange fluctuation adjustment cost to Sh1.92, up from Sh1.62 recorded in March. Change in forex charge item on the power bill is due to the volatility of the shilling against major world currencies. Kenya Power pays a substantial amount of its debts using other currencies like the dollar, Euro andYen.
“Notice is given that all prices for electrical energy… will be liable to a fuel cost charge of plus 573 cents per kilowatt hour (kWh) for all meter readings taken in April,” said the notice. Electricity generated by thermal power producers that use fossil fuels is sourced to bridge the short fall between consumption and power generated by the relatively cheaper sources like hydro and geothermal.
Kenya Power passes the two charges – forex fluctuation adjustment and fuel cost charge – to its clients to shield it from adverse effects of these variables.
However, these costs change frequently due to the volatile nature of oil prices and the Kenyan currency, making the power bills unpredictable.
By Macharia Kamau, The Standard
