Kenyans to Pay More for Electricity as EPRA Raises KPLC Charges Per Unit

 

Energy and Petroleum Regulatory Authority (EPRA) revised fuel charges and foreign exchange fluctuation rates charged on electricity from Kenya Power. Rising fuel prices The energy regulator raised the fuel energy charge on electricity from KSh 4.16 to KSh 4.94 per unit, representing an 18.7% increase, Business Daily reported In September 2023, EPRA increased fuel prices, citing a sharp rise in international fuel prices. FXPesa senior accounts manager Jesse Ogola said the rising fuel prices will affect manufacturing activities in the country, thus influencing product prices. "Higher cost of manufacturing due to higher fuel prices affects the budget of most producers, leading to tough choices; either a hike in the product sale price,@ said Ogola, in an exclusive interview with TUKO.co.ke. Weakening shilling against the US dollar The Central Bank of Kenya of Kenya (CBK) report showed Kenya shilling traded at KSh 148.56 per US dollar as of October 5, 2023. Based on this continued shilling depreciation, EPRA raised the foreign exchange rate fluctuation adjustment by 48.5% to KSh 2.05 from KSh 1.38 per unit.  "Reduced Purchasing Power" According to FX Pesa lead market analyst Rufas Kamau, Kenyan currency registered an average monthly depreciation rate of 2.16% in 2023 due to high fuel prices and a strong dollar. Kamau said if the trend continues, the Kenya shilling could sink further to KSh 160 against the US currency by the end of 2023. ""If this trend continues, the exchange rate is anticipated to reach 160.45 by the end of the year," said Kamau in an exclusive interview with TUKO.co.ke. Electricity prices The two factors increased electricity prices from KSh 27 per unit reported in September 2023 to KSh 28 per unit in October 2023. Kenyans have been crying foul over increased power bills from KPLC, calling for government intervention. In September 2023, they urged Nairobi Senator Edwin Sifuna to include a clause in the Energy Amendment Bill 2023 to prevent the utility firm from increasing prices.   BY TUKO NEWS