Friday, February 23, 2024 - The Energy and Petroleum Regulatory Authority (EPRA) has announced that the high electricity prices will remain throughout the year.
According to EPRA, the current
billing of electricity prices will last till December 2024.
This action aims to recover an
eight-month unpaid subsidy accrued between October 2019 and March 2023.
EPRA implemented a 15% reduction
in tariffs for its end-users in 2022, following a presidential directive that
was effective from January 2022 till April 2023.
To maintain this reduction, EPRA required a revenue of Ksh26.3 billion.
Sector entities collectively pledged to
contribute KSh12.2 billion, with the remaining balance of KSh14.1 billion to be
covered through a subsidy from The National Treasury.
However, the pass-through costs
remained unchanged from January 2022 with the Treasury honouring its commitment
up to August 2022.
The cost incurred for the
remaining four months following the shift in policy had to be billed to the
consumers.
"This meant that the
treasury’s share of the reduction had to be paid by consumers through the
pass-through mechanism," EPRA stated.
Fast forward to April 2023, EPRA
was forced to further review its tariffs for 2023/2024, 2024/2025, and
2025/2026, which now included the aforementioned unfunded costs.
Its tariff base was not
overbilled during the review, as charges were assessed based on existing
generation contracts, operation and maintenance contracts, and the associated
cost of finance for these services.
The Kenyan DAILY POST
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