Though small domestic consumers are expected to enjoy a slight decline in the cost of power in the new regime, the benefits are likely to be eroded as big industrial consumers pass on the cost through higher pricing of their goods.
Speaking to the Nation on the phone Monday, Kenya Power corporate affairs manager Migwi Theuri confirmed that the rates are already in effect.
Customers on prepaid meters started noticing the change on tokens bought since Sunday, while those on post pay will notice the change in their next month bill.
“The new rates were to take effect on December 1 and they have.
For pre-paid customers the rates have taken effect but those of post- paid will reflect in the December bills,” Mr Theuri said.
Under the new rates, ERC directed that Kenya Power charges Sh15.51 per unit of electricity as a base tariff starting December 1, 2013 to June 2014, down from Sh15.59 per unit that has been charged before this review.
The tariff will then drop to Sh13.44 and Sh12.66 per unit of electricity in the two subsequent financial years to June 2016.
As a result of a marginal cut in the tariff to be applied during the current financial year, only domestic consumers spending up to 50 units of electricity per month and small commercial enterprises will get a reduction of 7.9 per cent and 2.5 per cent respectively.
These consumers constitute 69 per cent of Kenya Power’s total customers, leaving the middle class, high income consumers and heavy industries to face increases of between 3 and 12 per cent in the monthly bill during the period, before the rates stabilise in the medium term.
The rising cost of power is expected to trigger new inflationary pressure on the economy, further burdening consumers.
ERC last month said it had discussed the new figures with the Kenya Power and the utility firm had no option but implement them.
“If they (Kenya Power) charge anything more than that they will be in complete violation of the law,” said Fredrick Nyang, acting director general of ERC.
The Kenya Power had asked for increase of the base tariff that was submitted to the ERC on February 11, 2013.
ERC however declined on grounds that during the tariff control period, the company will be able to purchase “cheap” electricity, generated from renewable sources such as hydro, wind and geothermal in power plants that are scheduled to be set up under the government programme to develop 5,000 megawatts of electricity in 40 months.
The last tariff review was carried out in 2008.
Even though ERC is required by law to carry out the exercise every three years, in 2011 the regulator declined to review the tariff due to a need to protect consumers from escalating inflation and a deteriorating exchange rate.'
Hi guys and gals, I cooked up a small webapp to estimate the cost of units before making payment. Check it out at tokenstimator.appspot.com. The code is on github for those interested.
On 15 February 2014 12:42, Dennis Kioko <dmbuvi@gmail.com> wrote:
Isn't this the Heisenberg principle? Something about things behaving differently when observed?____hey guyz.. My Q is that have you noticed, how the units move slowly
when they get below 10 as compared when you have like 117. I have
actually observed that, over the few months the cost has gone up.
On 2/13/14, William Warero <wwarero@gmail.com> wrote:
> I haven't tried it, but some kid called Walter was showcasing it at an
> elevator pitch at the just concluded Mobile East Africa forum.
>
>
> On Thu, Feb 13, 2014 at 5:31 PM, Mark Mwangi <mwangy@gmail.com> wrote:
>
>> Rather unfriendly name. Also nothing to tell its local. Trying out in a
>> few though.
>>
>>
>> On Thu, Feb 13, 2014 at 5:18 PM, William Warero <wwarero@gmail.com>
>> wrote:
>>
>>> Talk about it and someone builds it.
>>>
>>> Watching someone showcase an android app for calculating prepaid units.
>>>
>>> It's called EEMS and is available in the Play store.
>>> On Feb 10, 2014 5:26 PM, "Jimmy Thuo" <jimmy.thuo@gmail.com> wrote:
>>>
>>>> Thanks Alex Will await her response.
>>>>
>>>>
>>>> On Mon, Feb 10, 2014 at 2:10 PM, Alex Gabriel
>>>> <alexgabbie@gmail.com>wrote:
>>>>
>>>>> Hallo jimmy.thuo <jimmy.thuo@gmail.com>,
>>>>>
>>>>> I have raised your question with Ms.Krystyne, I request we give her
>>>>> sometime to respond.
>>>>>
>>>>> cheers
>>>>> ag
>>>>>
>>>>> Alex Gabriel
>>>>>
>>>>>
>>>>> On Mon, Feb 10, 2014 at 1:23 PM, John Swekenyi
>>>>> <johnswekenyi@gmail.com>wrote:
>>>>>
>>>>>> And there is a new levy introduced on the bills called *WARM*, Sarah,
>>>>>> do you mind bringing us to speed on this as well.
>>>>>>
>>>>>>
>>>>>> On Mon, Feb 10, 2014 at 1:06 PM, Odhiambo Washington <
>>>>>> odhiambo@gmail.com> wrote:
>>>>>>
>>>>>>> Hi Skunks,
>>>>>>>
>>>>>>> Q1. Is there a situation where I can go to the vendors and ask them
>>>>>>> to sell me 48 units? Or N units as it may?
>>>>>>> Q2. Since I remain a domestic consumer, why should the cost per unit
>>>>>>> be varied if I buy more? If I consume more, probably because I have
>>>>>>> decided
>>>>>>> to run all my eqpts on a 24-hour basis, why should I be penalized for
>>>>>>> that?
>>>>>>> Q3. If I decide to hold an 'electricity party' at my house (ask guys
>>>>>>> to bring all their gadgets and power them) why should I be charged
>>>>>>> more?
>>>>>>> It's like telling me that if I start buying 10 pkts of milk daily
>>>>>>> instead
>>>>>>> of the usual one, then the price per unit measurement should go
>>>>>>> higher,
>>>>>>> just because I am consuming more?
>>>>>>>
>>>>>>> This graduation of charges is where KPLC is stealing from Kenyans.
>>>>>>> The other avenue is the dollar nonsense. Electricity is generated
>>>>>>> from
>>>>>>> Geothermal Energy, Water and Diesel generators. I don't see why the
>>>>>>> Diesel
>>>>>>> generation aspect should be featured so prominently as to make the
>>>>>>> dollar
>>>>>>> adjustments be the avenue for fleecing Kenyans. How often does the
>>>>>>> dollar
>>>>>>> fluctuate? Why is it that KPLC emphasized this dollar/diesel
>>>>>>> nonsense?
>>>>>>> Don't we buy Diesel at the gaz stations and the prices get fixed by
>>>>>>> ERC?
>>>>>>> I think besides the above, ERC should also regulate Electricity
>>>>>>> prices, much as I suspect even ERC itself is controlled by cartels.
>>>>>>>
>>>>>>> My point is, this 'sweet point' suggested by Dennis should not
>>>>>>> arise.
>>>>>>> As long as I am domestic consumer, whether I buy 50 or 1000 units
>>>>>>> within a
>>>>>>> calendar month, the price per unit should be the same.
>>>>>>>
>>>>>>> I also don't understand why we should pay a 'standing monthly fee'
>>>>>>> for the meters, even when the meter is unused. Kwani the meter does
>>>>>>> not
>>>>>>> have a cost? What is the standing cost for? Why should I pay 120 per
>>>>>>> month
>>>>>>> for, say, 10 or 20 years? Does the meter cost infinity? The meter is
>>>>>>> for
--
with Regards:
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--King'ori.Regards
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