Electricity consumers in Kenya will from August pay less for power after the Energy Regulatory Commission (ERC) reviewed the current electricity tariffs.
While unveiling the new power tariff in Nairobi on Monday, Energy Regulatory Commission Director General Pavel Oimeke said the commission has scrapped the Sh.150 fixed cost charge on the Kenya Power electricity billing system.
“To ensure that there is equity and consumers pay for power only when they consume, all fixed charges for all consumer categories have been removed. This is meant to reduce the many cost items in the customer bills & simplify understanding of the bills,” said ERC.
Under the Lifeline tariff, ERC says over 3.6 million Kenya Power customers who consume less than 10 units per billing cycle, will now pay between 36 and 82 percent less.
The energy regulator further said the overall unit cost of power will reduce from Sh17.77/KWh to Sh16.64/KWh.
“Commercial and Industrial Customers on average will get a reduction of 4.4%. This is in addition to the 50% discount in the Time of Use Tariffs,” said ERC.
ERC says customers will now pay for only what they consume starting with the July 2018 billing cycle.
Oimeke noted the review follows the need to accommodate more renewable energy costs and address the numerous complaints by electricity domestic customers on the complexity of the tariff billing regime.