EPRA Hikes Electricity Prices Again by 16.5% on Weak Shilling

 

In a move that is bound to impact consumers across Kenya, the Energy and Petroleum Regulatory Authority (EPRA) has announced yet another electricity price hike, this time by a substantial 16.5%. EPRA director general Daniel Kiptoo. The regulator adjusted forex and fuel charges.The decision comes against the backdrop of a weakened national currency, as the shilling continues to depreciate against the United States (US) dollar and other currencies. This move is expected to escalate the cost of living for households and businesses alike, raising concerns about the economic implications for a population already grappling with the high cost of living.NTV reported that EPRA hiked the forex and fuel charges, meaning consumers must dig deeper into their pockets to access power. EPRA raised the energy charge by 8.7% to KSh 4.33 per unit, up from KSh 3.98 last month. It also increased the foreign exchange rate fluctuation adjustment charge by 103.7% to a high of KSh 6.46 per unit, up from KSh 3.17. How weak shilling led to high electricity costs It was not the first time that EPRA increased electricity costs. In October 2023, the regulator revised fuel charges and foreign exchange fluctuation rates charged on electricity from Kenya Power. 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. 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. Why Kenyans were up in arms A section of Kenyans expressed their disappointment on social media after EPRA increased token charges. Kenyans on social media wondered why the government kept increasing electricity costs, yet it promised to lower the cost of living. @Imoonar observed: "Something is definitely up with KPLC. My power consumption hasn't increased, but I seem to be buying tokens every other day. Literally going to work to pay taxes and buy tokens." Mohamed Hussein posed: "KPLC, why are you robbing us? Last week, I bought a token of KSh 3K and got 95.45 units, and today it has reduced to 90.89 units. Is this bottom-up? This is daylight robbery." READ ALSO Kenyan Dairy Farmers Set to Benefit as Ruto Opens New KCC Nyahururu Factory, Increases Milk Prices @NainiMariane decried KPLC's monopoly: "The monopoly that is #KPLC waah, it's insane. This is the most toxic relationship. 

by  Japhet Ruto