Kenya Power recently made adjustments to its electricity token prices, leading to notable changes in costs for consumers. This change became evident when comparing token purchases made on October 2nd and those made on Tuesday, October 10th.sews On October 2nd, individuals who purchased tokens worth Ksh200 received 7.52 tokens, whereas on October 10th, the same amount yielded only 7.1 tokens.
This fluctuation in token value was primarily influenced by an increase in the Fuel Energy Charge, which rose from Ksh31.28 to Ksh35.07. This particular alteration was a direct consequence of the Energy and Petroleum Regulatory Authority (EPRA) decision to raise fuel prices on September 14th. To put this into perspective, in the October review, the price of a liter of Super Petrol increased by Ksh16.96, Diesel saw a hike of Ksh21.32 per liter, and Kerosene soared by Ksh33.13 per liter.
It’s important to understand that the Fuel Energy Charge represents an additional cost or rebate to consumers due to fluctuations in global fuel prices and the quantity of oil consumed in electricity generation. This charge operates on a one-month lag behind the actual fuel price, with Kenya Power collecting and subsequently passing on all collected funds to electricity generation companies, who, in turn, compensate fuel suppliers.
The increase in token prices also had ties to the exchange rate, as the US dollar gained strength against the Kenyan shilling. Over the past week, the dollar has consistently been valued over Ksh145, and currently stands at Ksh148. However, this shift was partly offset by a reduction in the EPRA charge, which decreased from Ksh0.6 to Ksh0.56.
Additionally, the REP Charge saw a decrease to Ksh5.88 from the previous week’s Ksh6.23. This charge, a 5% levy on the cost of power units consumed by customers, is directed towards funding rural electrification projects, managed by the Rural Electrification Authority (REA).
As the situation unfolds, further adjustments to token prices may be necessary if fuel prices continue to rise in the upcoming October EPRA review. These adjustments are essential to reflect the dynamic nature of the energy market and its impact on the cost of electricity for consumers.