Jan 25, 2022

Mawazo Writing Africa

Writing about the main

Ministry delivers on Uhuru promise to cut power cost

On Friday, the Department of Energy defied dismal public expectations and announced a 23% drop in electricity prices, more than two weeks after the head of state’s deadline.

President Kenyatta at his Jamhuri Day address , promised to cut electricity prices by a third, with the first half being achieved before Christmas Day and the other half in the first quarter of this year.

However, Christmas came and went, and with it the first day of the New Years Day. On social media, Kenyans were busy writing memes lamenting that the promise of a cheaper power had become one of the many promises made by the anniversary government that was never kept.

With each passing day , it increasingly looked like the president would inevitably end up with an egg in his face as electricity prices rose instead of falling as he had promised.

That was until Friday when the Department of Energy unexpectedly announced that electricity prices were finally lowered a year after a special notice was published. This came after a hesitant tariff review by Kenya Power and approval from the Energy Regulatory Authority.

“The tariff cut is a fulfillment of His Excellency President Kenyatta’s commitment to the nation on Jamhuri Day 2021 that the electricity cost cut will be the first 15 percent will be reflected in the bills for the end of 2021, “said the ministry. “This cut, due in January, will increase livelihoods and economic growth by lowering the cost of living, putting more money in Kenyans’ pockets and lowering the cost of doing business.” The ministry added Add that they are working hard to cut their electricity bills by another 15 percent by the end of March by renegotiating Power Purchase Agreements (PPAs) that Kenya Power has signed with independent power producers.

Perhaps to address the delay in To compensate for the lowering of prices, the government cut prices for small electricity consumers by 23 percent.

The regulator for energy and petroleum (Epra) lowered the energy fee for private consumers of lifelines by 2.3 Shillings. per unit to 7 Sh. 7 less than Sh10 since November 2018. These are consumers whose monthly electricity consumption does not exceed 100 kWh.

This means that if they buy 100 units of electricity this month, they pay Sh230 less.

< p> “Valid for private consumers for the supply of 240 or 415 Vol. ts provided and measured by the company and whose consumption does not exceed 100 units per post-payment billing or prepaid unit purchase period: Energy fee of Sh7.70 per unit for units used”, explained Epra.

In the meantime, household customers, whose monthly consumption exceeds 100 kWh but is below 15,000 kWh, now pays Sh12.6 per unit compared to Sh15.8, a reduction of 20 percent.

Kenya Power has 7.85 million Lifeline and household customers, or 94.85 per percent of its 8.27 million customer base.

Meanwhile, non-domestic small business consumers are paying their Consumption 100 units en does not exceed 7.7 per unit from Sh10 downwards. The same category of customers, the consumption of which exceeds 100 units per month, but is less than 15,000 units, becomes 12.4 Sh. per kWh compared to 15.6 Sh. billed.

The utility has 404,000 small commercial consumers.

At the same time, Epra has reduced energy costs for commercial and industrial consumers from over 15,000 units per month to 8.7 Shh per unit during the normal hours reduced by Sh12 per kWh. They were also given a price of Sh4.35 per unit for off-peak consumption while maintaining the demand fee at Sh800 per kVA. Government ministries, departments, agencies and district governments have also been given their tariffs Reduced from Sh7.5 per unit to Sh5.5 per unit.

Other fixed costs such as the Epra levy, the levy for the rural electrification program and the inflation adjustment.

President Kenyatta is calm be relieved that, contrary to other promises made by his government, which have not been kept, this has at least been fulfilled.