Kenya Power hikes electricity charges

By Macharia Kamau

Kenya: Electricity consumers will face higher bills for March after Kenya Power revised upwards the foreign exchange and fuel surcharge components in the power bill.

In a gazette notice Friday, Kenya Power increased the foreign exchange fluctuation charge to Sh1.62 and the fuel cost charge to Sh6.21 per unit. This is an increase from Sh1.04 forex charge and Sh5.38 fuel cost in February.

This means consumers will pay an additional Sh1.75 per unit of electricity consumed in the month of March.

The power distributor said the higher charges would be effected in bills for March.

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“Notice is given that all prices for electrical energy... will be liable to a fuel cost charge of 621 cents per KWh for all meter readings taken in March 2013,” said Kenya Power in the Kenya Gazette.

The power firm usually passes on costs accrued due to rise on fuel prices as well as instability in the local currency to consumers. Kenya Power passes the two charges to its clients without any attempts to shield them from adverse effects.

They change frequently due to the volatile nature of oil prices and the Kenyan currency, making the power bills unpredictable.

Kenya heavily relies on power produced using hydro dams and during dry spells, the country is forced to increase the share of electricity generated using diesel.

This means that in March, Kenya Power purchased increased amounts of electricity generated by Independent Power Producers that use the more costly diesel to generate electricity.

During the month, the shilling traded at an average of Sh85.81 against the US dollar compared to Sh87.45 in February.

Murbane crude oil prices increased marginally from $112.05 to a barrel in January to $115.40 to the barrel.

Oil prices are however expected to drop this month bound between $113.00 per barrel and $110.00 per barrel on the lower side as oil futures trade at $111.00 per barrel.