Consumer power bills have eased for three months in a row on reduced use of expensive diesel-generated electricity with the energy regulator now promising a further eight per cent drop in tariffs from next month.
The Energy Regulatory Commission (ERC) indicated that fuel levy in June electricity bills fell to Sh4.75 per kilowatt hour (kWh) from May's Sh4.95 on increased use of cheaper hydropower that cut the share of costlier diesel generators.
Heavy reliance on the fuel generators due to low water levels in the hydroelectric dams, had been blamed for the rise in fuel surcharge, hurting homes and businesses.
ERC director-general Pavel Oimeke told MPs last week that a new power tariff structure with lower charges had been prepared that would cut power costs by eight per cent upon implementation from July 1.
Fixed costs
He said that the energy regulator was working with distributor Kenya Power to ensure that consumers are not charged fixed costs which is payable whether one uses power or not.
It is currently fixed at Sh150 for domestic consumers.
The impending tariff review came after Kenya Power submitted an application at the ERC, seeking higher tariffs but the government declined, instead promising customers lower bills.
Aside from fuel levy, forex charge, which compensates for foreign currency costs, including loans that power producers have in their books, has dropped to Sh1.11 this month from Sh1.22 in May.
This has left consumers with net savings of Sh0.31 per kWh excluding taxes.
Overall saving
The savings of Sh0.31 a unit will see consumers make an overall saving of about Sh275 million on their power bills, based on the monthly consumption of about 890 million kWh.
The fuel surcharge levied on diesel generated power has steadily increased from Sh2.31 kWh in October 2016, a jump that has made electricity prices rise the most among basic home commodities.
Power bills for homes that consume 200 units per month rose 15 per cent in the past year from Sh3, 633 in May last year to Sh4,178 same month this year -- one the fastest monthly growth among basic household items.
