In Gazette Notices issued on Friday, August 14, EPRA announced three electricity tariff adjustments that amount to Ksh4.7027 per kilowatt-hour (kWh).
The charges include a Fuel Energy Cost Charge of Ksh3.51 per kWh, a Foreign Exchange Fluctuation Adjustment of Ksh1.1777 per kWh and a Water Resource Management Authority (WRMA) levy of Ksh0.015 per kWh.
EPRA attributed the fuel energy charge mainly to electricity generated and purchased from various power plants during July. The calculation included electricity produced from diesel, geothermal and thermal power plants, as well as imported electricity.
Some of the highest fuel costs were recorded at isolated thermal power stations. North Horr had a fuel cost of Ksh396.12 per kWh, while Rhamu recorded Ksh363.18 and Baragoi Ksh346.75 per kWh.
The regulator also introduced a Ksh1.1777 per kWh foreign exchange fluctuation adjustment. EPRA said the charge was linked to exchange-related costs incurred by companies involved in the electricity supply chain.
The authority reported that foreign exchange gains and losses involving KenGen, Kenya Power and Independent Power Producers amounted to approximately Ksh1.353 billion.
In addition, consumers will pay Ksh0.015 per kWh through the WRMA levy.
EPRA clarified that the Ksh4.7027 per kWh does not represent the total amount consumers will pay for electricity. Power bills contain several other approved tariff components, taxes and levies.
The latest announcement comes shortly after Kenya Power warned about possible increases in electricity costs as the country continues expanding its use of variable renewable energy.
Kenya Power said the growing reliance on wind and solar power could present challenges to grid stability because their output can change depending on weather conditions.
The company urged policymakers to consider the cost of maintaining grid stability and supporting variable renewable energy when approving new electricity generation projects.
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