Electricity Consumption In Kenya Drops After The Removal Of Subsidy

Electricity consumption decreased last month as consumers started to feel the pinch of increasing energy prices, canceled subsidies, and a depreciating shilling. Reports from the Energy and Petroleum Regulatory Authority (EPRA) indicate power usage declined to 1.099 Kilowatt-hours in September from 1.11 billion units that were consumed in August after power prices were hiked.

“Total units generated and purchased (G) including hydros, excluding exports in September 2022 (was) 1,099,340,544kWh,” said EPRA director-general Daniel Kiptoo in a gazette notice. Electricity prices went higher after the 15% subsidy implemented by former President Uhuru Kenyatta was removed. In the month of October consumers are reported to be paying more for electricity after the energy regulator EPRA raised the fuel cost charge for the second month in a row thus the higher bills. EPRA has increased the Fuel Cost Charge to Ksh.7.09 per kilowatt-hour (kWh) up from Ksh. 6.79 last month.

 “Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2018, notice is given that all prices for electrical energy specified in part II of the said Schedule will be liable to a fuel energy cost charge of plus 709 Kenya cents per kWh for all meter readings to be taken in October 2022,” said Mr Kiptoo in the notice.

In an effort to recoup the funds used for the electricity subsidies since December, higher power rates have been implemented despite a significant decrease in fuel prices. In the months of August and September, the average price of petrol decreased by 10.6% per cubic meter meanwhile, the landed cost of diesel fell by 6.87 per cent while that of kerosene dropped by 1.82 per cent.

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