Consumers Federation of Kenya (COFEK) welcomes the proposal by the Energy Regulatory Commission (ERC) to offer a reprieve to electricity consumers on the proposed new tariff structure.

Our proposals for the tariff review are as follows;

(a)    In order that effective public participation is attained, we urge that at least 10 public consultation forums be convened across the country

(b)   Summary of the Kenya Power tariff review application and jutification be made in both English and Swahili and circulated in the media and at the consultation forums

(c)    Scrap fixed meter charges and WRMA levy as both serve no purpose at all. WARMA cannot justify further financing from the electricity consumer given its’ failure to add value to the hydro-generation chain

(d)   Future tariffs be pegged on cost-efficiency especially in procurement of capital expenses and staff to meter ratios. Consumers should not finance corruption and or unnecessarily bloated staff yet contractors are still hired at huge cost

(e)    As earlier pledged by the Principal Secretary for Energy Dr Joseph Njoroge, there should be no Forex adjustment as the guarantees will be made in KES and not in the US$

(f)    Inflation adjustment factor ought to be absorbed by power within the cost of actual consumption

(g)   We propose an additional 0.05 cents/Kwh levy for consumer protection, awareness and insurance Fund to be separately administered by ERC

(h)   We urge the Ministry of Energy to seek Treasury and National Assembly nod to waive VAT on domestic consumers with consumption of up to 200 units

(i)     For purposes of predictability of bills, the average Fuel Cost Charge in the event of use of thermal generation, be maintained for at least 3 months before variation

(j)     Finally, that a forensic audit be conducted on all existing thermal independent power producers with a view to dropping those that are unnecessary and or unviable contractual obligations notwithstanding

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