Kenya Power in talks with energy regulator to increase electricity prices

Kenya Power has opened talks with the energy regulator to increase electricity prices by up to a fifth after the State softened its earlier stand against higher tariffs.

The listed utility firm said it was engaging the Energy and Petroleum Regulatory Authority (EPRA), the electricity sector regulator on the application it made last year seeking a revision of tariffs.

The Energy Ministry is understood to have made a U-turn and is now in agreement that Kenya Power needs more cash to cover the cost of buying wholesale electricity from generators such as KenGen and maintenance of the national grid.

Kenya Power managing director Bernard Ngugi said, "We are in consultations with EPRA and will provide further information as soon as it is available."

If implemented, the higher tariffs will hurt household budgets and raise the already high cost of doing business in Kenya.

Kenya Power wants to increase the consumption charge for usage of fewer than 100 kilowatts per month to Sh12.50 a unit, up from the current Sh10.

The charge for consuming above 100 units will rise to Sh19.53 a unit from the current Sh15.80 in the event that the regulator approves the proposed tariffs.

Kenya Power holds that the higher tariffs are justified because the present electricity prices lapsed last year.

In 2018, EPRA reduced the retail prices of electricity after an order from President Uhuru Kenyatta in the wake of widespread complaints from domestic customers and small businesses over a costly tariff introduced last July.