EPRA Announces Three Main Changes in Electricity Billing
Kenyans are set to experience slight but notable shifts in their monthly power bills after the Energy and Petroleum Regulatory Authority (EPRA) announced fresh electricity tariff adjustments affecting three key billing components.
The revised charges, published in the Kenya Gazette on Friday, February 13, target the foreign exchange fluctuation adjustment, the fuel energy cost charge and the Water Resource Management Authority levy. Although such reviews are routine in the power sector, analysts say the latest changes could have a meaningful impact on households already coping with a high cost of living.
Officials stated “the review aligns electricity pricing with prevailing economic factors affecting generation and supply of power.”
Foreign exchange adjustment rises
The most significant revision affects the foreign exchange fluctuation adjustment, which EPRA set at 120.61 cents per kilowatt hour — equivalent to Ksh1.2061 per unit consumed.
According to data released alongside the notice, foreign exchange losses amounted to approximately Ksh1.31 billion, a cost now factored into consumer tariffs.
Energy sector analysts explained that fluctuations in the shilling directly influence electricity pricing whenever imported fuel or foreign-denominated contracts are involved.
A senior official familiar with the review process said “currency movements significantly affect the cost of electricity, particularly where generation contracts and fuel purchases are denominated in foreign currency.”
Fuel energy cost charge adjusted
The second component revised is the fuel energy cost charge, now set at Ksh3.10 per kilowatt-hour.
This charge covers the operation of thermal power plants, which rely on imported diesel or heavy fuel oil. While Kenya’s grid is largely powered by geothermal and hydropower, thermal plants act as backup sources during peak demand or when water levels in dams decline.
Energy experts noted “thermal generation stabilizes supply but increases costs because fuel prices depend on global oil markets.”
WRMA levy maintained at minimal level
The third adjustment involves the Water Resource Management Authority levy, set at 1.21 cents per kilowatt-hour — equivalent to Ksh0.0121 per unit consumed.
The levy supports conservation and management of water resources used in hydropower generation, ensuring sustainability of dams and catchment areas.
Regulators explained “the levy supports maintenance of water catchments critical for electricity generation.”
What it means for consumers
When combined, the three adjustments could significantly affect heavy electricity users. Estimates indicate a household consuming about 300 units per month could incur nearly Ksh1,300 in additional costs from fuel and foreign exchange charges alone before other taxes and levies are included.
Economists say the adjustments reflect structural realities of the energy sector rather than new taxation, but they still translate into higher monthly expenses for consumers.
Authorities have advised consumers to adopt energy-saving practices to manage bills while the country continues investing in renewable energy sources aimed at stabilizing future tariffs.
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EPRA Announces Three Main Changes in Electricity Billing
