Nothing to smile about as EPRA delivers disturbing news on electricity prices – Look! We didn’t sign up for this

 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.


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