This archive report was first published on 19 December 2021.
On December 20, 2021, the Energy and Petroleum Regulatory Authority (Epra) announced a record-high fuel cost charge (FCC) of Sh4.63, the highest in three-and-half years.
This increase in the fuel surcharge will result in a higher cost of power, reducing the number of units consumers get for a similar amount of money.
However, in a move to ease the burden of electricity bills on households and businesses, the State has decided to offer a 15 percent discount on the cost of power in the January bills.
Kenya Power will implement this reduction, which is equivalent to Sh18.8 billion based on Kenya Power sales of Sh125.9 billion in the year to June.
The fuel surcharge has been on a steady rise from Sh3.77 in August, prompting the State to intervene and lower the cost of electricity amid the economic fallout of the Coronavirus pandemic.
According to Epra, the fuel cost charge has increased to Sh4.63 from Sh4.21 last month, setting the stage for the highest cost of power since June 2018.
“Notice is given that all prices for electrical energy specified in Part II of the said Schedule will be liable to a fuel energy cost charge of Plus 463 Kenya cents per kWh for all meter readings to be taken in December 2021,” said Epra in a notice.
