+Baba Hakeem

+Baba Hakeem

Reprieve for Kenyans as Electricity Cost Revised Downwards

Posted by: Baba Hakeem in Business 1st November 2018 0 364 Views

1^st of November, 2018 is a happy day for Kenyans after the president issued a directive to have electricity cost revised downwards.

On the 31st of October 2018, The Energy Regulatory Commission raised the lifeline threshold to 100 kilowatt-hour (kWh) from 10 units it set in July, cutting power bills for low-income households and small-sized businesses.

The downward review means that households and businesses consuming a maximum of 100 units of power will fall by as much as Sh7.02 per unit or 31.63 per cent compared with October after factoring in variable pass-through charges such as 16 per cent valued added tax (VAT), fuel cost charge, forex levy and inflation charge.

To explain this graphically for a household that consumes 100 kilowatt hours (KWH) /units, these are the new rates that they will be charged.

	Old Rates	New Rates
Unit Charge	1,580	1000
Fuel Cost Charge	250	250
Forex Credit	-8	-8
Inflation Charge	10	10
Warma	2	2
Vat 16% (Sh)	212	119
Total	2,047 Ksh	1,374 Ksh