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ERC scraps electricity standing charge, reduces power tariffs

Commercial and Industrial customers get a reduction of 4.4 percent/FILE

NAIROBI, Kenya, Jul 30 – Kenya Power customers will pay less for electricity after the Energy Regulatory Commission this morning announced new electricity tariffs and the scrapping of standing charges.

The new tariff cuts the cost of electricity from 17 shillings and 77 cents per kilowatt hour to 16 shillings and 64 cents per kilowatt, an overall reduction of 6 percent.

Under the Lifeline tariff, ERC says over 3.6 million Kenya Power customers who consume less than 10 units per billing cycle, will now pay between 36 and 82 percent less for electricity as the regulator also announced the removal of the Sh150 standing charge.

ERC Director General Robert Oimeke says the review follows the need to accommodate more renewable energy costs and address the numerous complaints by electricity domestic customers on the complexity of the tariff billing regime.

“The Economic Policy Objective of retail tariff reviews is to achieve efficient resource allocation within the economy with consumers only paying for the costs prudently incurred by the utilities,” said Oimeke.

Commercial and Industrial customers get a reduction of 4.4 percent in addition to the 50 percent discount in the off-peal tariffs and the proposed Special Economic Zone tariff.

ERC says customers will now pay for only what they consume starting with the July 2018 billing cycle.

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