ERC mulls uniform tariff for prepaid customers

ERC mulls uniform tariff for prepaid customers

The Energy Regulatory Commission (ERC) is set to overhaul the electricity subsidy tariff that could see the bracket of low electricity consumers expanded.

The regulator is set to introduce a new uniform electricity tariff system to cushion lifeline consumers.

Currently electricity users consuming between 1 and 50 units of electricity are charged Sh2.50 per kilowatt hour while those consuming between 51 to 1,500 units are charged at Sh12.75 per kilowatt hour.

ERC Director General Pavel Oimeke said the uniform tariff will ensure those consuming up to 100 units are charged consistently.

“When you buy units several times there will be a variance in terms of how much you pay in the overall cost per unit of electricity. So we are going to review that category of consumers to introduce a tariff category where it will be uniform throughout whether you are consuming 20, 50 or 100 units you will have a uniform cost of energy,” Mr Oimeke said.

The ERC hopes the tariff, to be introduced by April, will enable customers get better billing for electricity tokens.

Kenya has 6.2 million customers connected to electricity with 4 million of those being on pre paid meters.

Consumers have however lamented of the inconsistency in tokens received during a month they make more than one purchase.

“When you move from the lifeline category of 0-50 units you move to the category of domestic consumers and you are charged more because we have created a social equity tariff to ensure those who consume less don’t pay more,” he said.

For prepaid customers, Kenya Power charges fixed costs such as fuel cost and forex levy once a month which are not factored into subsequent token purchases within the same month.

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