Cost of power to reduce as ERC scraps fixed cost charges

Electricity consumers in Kenya are set to pay less for power beginning August this year after the Energy Regulatory Commission (ERC) reviewed the current electricity tariffs.

In a statement issued on Monday, ERC said it had scrapped the Ksh.150 fixed cost charge on the Kenya Power electricity billing system.

“To ensure that there is equity and consumers pay for power only when they consume, all fixed charges for all consumer categories have been removed,” said ERC.

“This is meant to reduce the many cost items in the customer bills & simplify understanding of the bills.”

The initial tariff structure, which has been operational since 2013, as well as the fixed charge, have resulted in consumers receiving varying power units for the same amount of money.

The energy regulator further said the overall unit cost of power will reduce from Ksh.17.77 per kilowatt to Sh16.64 per kilowatt.

In the new electricity tariff, low-income households, whose consumption will not exceed 10 units per billing period, they will enjoy a reduced cost of between 36% and 82%.

“Commercial and Industrial Customers on average will get a reduction of 4.4%. This is in addition to the 50% discount in the Time of Use Tariffs,” said ERC.