Kenyans will dig deeper into their pockets for token purchases after Kenya Power increased charges for the month of January 2024.
This follows a surge in fuel and foreign exchange charges on electricity by the Energy and Petroleum Regulatory Authority (EPRA).
According to EPRA’s latest power review, small commercial customers will incur an increase of about 16.5 percent while domestic customers will incur an increase of 13.4 percent.
Likewise, electric vehicles charging farms will incur an increase of charges by 13.8 percent under the new review.
The move has raised concerns among Kenyans who are already grappling with the high cost of living.
Also Read: Govt Announces When Cost of KPLC Tokens Will Drop
EPRA Explains Reason for the Hike in Token Prices
According to the report by EPRA, it has increased the foreign exchange fluctuation adjustment charge by 103 percent to a new record high of Ksh6.46 up from Ksh3.17.
The higher charge is informed by the continued depreciation of the value of the Kenyan shilling against the US dollar in December.
Further, EPRA noted that the depreciation of the value of the Kenyan shilling raised the cost incurred by Kenya Power to purchase electricity from generators as well as service its debt.
Today, the shilling is trading at an average of Ksh159 against the US dollar.
KPLC collects the energy charge on behalf of thermal power generators to cover the fuel costs and it also supports off grid power stations that serve areas that are not connected to the grid.
How Kenya Power Charges for Tokens
Kenya Power charges a 16 per cent VAT on the pre-paid token units on the components including fixed charges, consumption, fuel cost charges, forex adjustments, demand charges and inflation adjustments.
It also charges the fuel energy charge which is Ksh33.85, and an EPRA charge which is Ksh0.62.
Also, there is Water Resources Authority (WRA) charge which is Ksh0.11 and the Rural Electrification Program (REP) charge is set at Ksh6.48.
