Power levies stagnate for four months, shows data

Power bills will remain unchanged in May as the monthly adjustment charges stagnate for four months in a row.

Official data indicates that fuel adjustment levy, which is linked to the amount of power generated from expensive diesel and supplied to the national grid, has remained at Sh2.31 kilowatt hour (kWh) of electricity consumed this month.

Forex levy, which is passed on to consumers to meet expenses incurred in hard currency by utility firms, has also stagnated at Sh1 per unit since January, according to the Energy Regulatory Commission (ERC).

Rising demand for electricity has prompted Kenya Power to step up the use of expensive thermal power, denying consumers cheaper electricity at a time when the use of low cost geothermal and hydro power has increased.

ERC has promised cheaper electricity bills for homes and businesses next month due to ongoing heavy rains that have filled dams for cheaper hydropower generation.

Homes consuming 50 kWh paid Sh534.30 last month, up from Sh493.12 in April 2015. Those that consumed 200 units paid Sh3,398 compared to Sh3,395 in April 2015.

The energy regulator every month receives electricity consumption data from Kenya Power to review the fuel cost levy and forex charge.

ERC uses data from the previous month to calculate the monthly variables.

Hydropower is Kenya’s cheapest electricity source but is unreliable since it is dependent on weather.

This has prompted a diversification plan hinged on renewable energy, especially geothermal.

Geothermal power is priced at about Sh7 per unit, thermal (Sh18) and hydropower is the cheapest, at Sh3.

Last August, the energy regulator put power utilities on the spot for not aggressively pursuing cheaper hydropower despite increased water levels in dams.

This came after the fuel levy hit a nine-month high of Sh3.11 per unit at the time. The ERC faulted the heavy uptake of thermal electricity and directed Kenya Power to revert to a mix that would stop the cost surge.