A man reading the electricity meter (PHOTO: FILE)
NAIROBI, KENYA: The Energy Regulatory Commission (ERC) has restructured the subsidised tariff currently targeted at low income electricity consumers in a move that will see many that have enjoyed the low-priced power locked out. They will instead pay higher charges.
Under a new billing structure by ERC, the lifeline tariff has been capped at 15 units of power per month from the current regime where low-income earners had a leeway of up to 50 units, and pay at subsidised rates.
Poor households will also pay a higher rate for energy consumed in the new harmonised tariff of Sh12 per unit, compared to the current rate of Sh2.50 per unit.
ERC has however scrapped the fixed charge that currently stands at Sh150 per month. It has instead factored it in the per unit cost of power.
The new tariff, which ERC expects to be used for August billing, has also reduced power prices for the wealthy domestic power consumers.
Households that consume over 1,500 units a month are charged Sh20 per unit but will now pay Sh16.50 a unit. The same charges will apply for people with less spending capability - consuming more than 15 units.
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The new tariff that will take effect in a month’s time is expected to be much simpler, and will give clarity to power consumers on how they are charged for their electricity.
“There have been numerous complaints by electricity customers on the complexity of the tariff regime whereby the billing has not been fully understood,” said ERC when it published the new tariffs, which will go through public consultation in July before implementation starts in August.
“For example, prepaid customers have been receiving varying units for the same amount of money within a billing cycle. This is mainly due to the existing graduated tariff structure for domestic consumers and the application of fixed charge.”
Under the proposed tariff, the energy industry regulator said prepaid customers would not get varying number of tokens whenever they spent the same amount.
For example, if one spends Sh1,000 for the prepaid units, they will always get a constant number of units.