The Energy Regulatory Commission (ERC) has announced new tariffs after public participation meetings held in various parts of the country between July 2 to July 12.
ERC agreed with the industry stakeholders, against Cofek push, to increase the revenue requirement from Sh120 billion to Sh131 billion. In opposing the huge increase in revenue needed, Cofek had argued that consumers were being forced to pay for avoidable technical and commercial losses.
According to ERC, the Sh131 billion budget will "meet energy purchase costsand allow for system expansion and maintenance".
Overall unit of power is Sh16.64 per KW/h down from Sh17.87 KW/h representing a slight dip of 7%.
The regulator has dropped Sh150 "fixed charge" on electricity bills.
Newly introduced "domestic lifeline" tariff will see over 3.6 million who spent less than 10 KW/h in a month have their bills reduce by between 36% to 82%. Cofek had pushed the regulator to expand the lowest category to 50KW/h units consumption.
Commercial and industrial consumers will have an average 4.4% cost reduction in addition to "Time of Use" tariff where they pay less from 10 pm to 6 am window.
ERC says "most" not all "power plants being commissioned into the grid are renewable energy with no fuel pass through costs. As a result, the Fuel Energy Cost will come to Sh2.50 per KW/h down from Sh4.19 KW/h. This will represent a relief of 40.3%.
The new rates come into effect from July 1, meaning the impact of the new bills will be realized in in August bills.
Statutory taxes such as WRMA, VAT among others remain unaffected.