Electricity consumers are set for a breather following a directive by President Uhuru Kenyatta to KPLC to scrap levy fees.
The Head of State’s new order means that Kenyans, who have been paying up to 77 per cent of levies as cost fees, would significantly drop, after months-long public outcry.
ERC director General Pavel Oimeke earlier hinted that fixed energy charges take 24.8 per cent while thermal or fuel costs which vary due to water levels – currently takes 27.7 per cent of the total bill.
VAT, forex and inflation take 13.6, eight and three per cent respectively, while Water Resource Authority takes 0.1 per cent of the total cost. This, in the long run, push up the cost of both prepaid and postpaid subscriptions.
The Star on Tuesday reported of a looming crisis meeting between National Treasury CS Henry Rotich and his Energy counterpart Charles Keter over then matter.
A report on the eighth Presidential round-table with Kenya Private Sector Alliance held last week indicates the two cabinet secretaries will meet to agree on scrapping the Water Resource Management Authority and Energy Regulatory Authority levies.
Each of the two levies accounts for 0.001 per cent of total power bill.
playUhuru orders Energy CS and KPLC to reduce electricity levies (Courtesy)
The Rural Electrification Programme which accounts for five per cent of the base rate is also expected to be scrapped.
The two were directed to cut the Foreign Exchange Rate Fluctuation Adjustment tax from current $0.16 (Sh16 ) to 0.9 (Sh9 ) as well as plan on the establishment of Fuel Cost Charge stabilisation fund meant to keep electricity prices stable and predictable.
The government is also expected to review Time of Use Tariff in its bid to provide quality and affordable energy to the private sector to power Uhuru’s Big Four agenda.
The expected review of power bills will see Kenyans now pay at least Sh10 less for 50kWh from the current Sh24.03.
Rotich and Keter are expected to give feedback to the Presidential Round Table chaired by the President on Friday.
