Relief as July Power Prices to Drop by 3.5 Percent

Kenyans have been issued a slight relief after the July power prices were reduced by 3.5 per cent, hence lower power bills this month.

The Energy and Petroleum Regulatory Authority (EPRA) cut the fuel energy charge to Ksh 4.02 per unit from Ksh 4.49 last month. This was issued by the latest monthly review of electricity prices. It has further reduced the foreign exchange rate fluctuation to Ksh 1.75 per unit from Ksh 2.06 per unit last month.

Consequently, an average customer paying Ksh 28 per kilowatt-hour (kWh) of electricity will now pay Ksh 27 per unit this month. This comes as a slight relief following the growing rate of electricity costs and other rising costs of living.

The lower charge comes as a result of Kenya sourcing cheaper hydropower imports and geothermal power. They are accelerating the displacement of thermal power from the grid. Thermal power is the most expensive power source fed into the country’s grid.

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Kenya has opted to retire many thermal power plants whose contracts are about to expire due to the high costs of thermal power. Furthermore, the country seeks to have 90 per cent of the grid comprising of clean energy and hence grow the use of cheaper renewable power.

Kenya Power has therefore said it will not renew its contract with the diesel-powered Kipevu I and Muhoroni Gas Turbine thermal power plants owned by Ken Gen after their deals expire later this year.

Joseph Siror, Kenya Power Managing director said the contracts expiry of the thermal plants will enable the use of more renewable energy. This will further reduce the cost of electricity.

This comes after a Kenya Power officer was allegedly assaulted by an MP for disconnecting the member of parliament from accessing electricity.

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