@TheStar

We’ve heard you: ERC to come up with an easier billing system

5 months ago, 13 July 00:51

By: Magdalene Saya An ...

The Energy Regulatory Commission has said it will consider concerns before coming up with a final harmonised tariff.

Speaking yesterday during a public hearing on the harmonisation of retail tariffs at KICC, ERC director general Robert Oimeke said other factors such as affordability and current economic trends will be considered.

“We have heard the desperation of consumers from large manufacturers to small domestic households and I can assure you we won’t overburden the consumer,” he said.

Oimeke said the ERC is not limited to the application by Kenya Power to review the tariffs.

Poor households using 15Kwh per month will save up to Sh7.50 should the proposed harmonisation of tariffs by the ERC be adopted.

The new tariff by ERC plans to scrap the fixed charge that currently stands at Sh150 per month for all domestic power users while introducing per unit cost of power.

Under the current regime, a consumer using 15Kwh pays a fixed charge of Sh150 in addition to Sh37.50 where a unit of power costs Sh2.50 whereas under the new proposal the same customer will pay Sh180 where a unit of power costs Sh12. This, in addition to the additional tax imposed.

At least 3.63 million households fall under the lifeline tariff ranging between 0-15 Kwh. Under the current regime low income earners have a leeway of up to 50 units with a subsidised rate.

On the other hand, Kenyans whose energy limit ranges between 16-50 Kwh per month will have to coff up more money to the power distributor. Under the Domestic Ordinary tariff, a consumer using 50 units per month will be charged Sh16.50 per unit as compared to the current tariff cost of Sh2.50 per unit plus the Sh150 charged as fixed cost.

This means, where the consumer currently pays Sh275 for 50 units they will now pay Sh825 under the harmonised tariffs, at least 200 per cent more.

Those with limits ranging between 51-1500 Kwh will also be charged Sh16.50 per unit cost of power compared to Sh12.75 plus the Sh150 fixed charge they are currently paying.

A household using 500 Kwh per month currently paying Sh6,525 will pay Sh8,250 for the same under the new regime.

The proposed harmonised tariffs however reduce power costs for the super rich domestic power consumers whose monthly power bill exceeds 1,500 Kwh. They will be charged Sh16.50 per unit cost of power compared to the current Sh20.57 per Kwh.

A home using 2,000 units of power in a month will pay 19.79 per cent less for electricity paying Sh33,000 compared to Sh41,140 under the current tariff.

ERC held its final public consultation forum on the proposed billing structure in Nairobi yesterday following similar forums in Garissa, Eldoret, Kisumu, Mombasa and Naivasha. It is expected to be used for August billing

“The tour around the country has seen the commission receive various views on the tariff and the commission thanks all ...
Read More


Category: topnews news business

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@TheStar

We’ve heard you: ERC to come up with an easier billing system

5 months ago, 13 July 00:51

By: Magdalene Saya An ...

The Energy Regulatory Commission has said it will consider concerns before coming up with a final harmonised tariff.

Speaking yesterday during a public hearing on the harmonisation of retail tariffs at KICC, ERC director general Robert Oimeke said other factors such as affordability and current economic trends will be considered.

“We have heard the desperation of consumers from large manufacturers to small domestic households and I can assure you we won’t overburden the consumer,” he said.

Oimeke said the ERC is not limited to the application by Kenya Power to review the tariffs.

Poor households using 15Kwh per month will save up to Sh7.50 should the proposed harmonisation of tariffs by the ERC be adopted.

The new tariff by ERC plans to scrap the fixed charge that currently stands at Sh150 per month for all domestic power users while introducing per unit cost of power.

Under the current regime, a consumer using 15Kwh pays a fixed charge of Sh150 in addition to Sh37.50 where a unit of power costs Sh2.50 whereas under the new proposal the same customer will pay Sh180 where a unit of power costs Sh12. This, in addition to the additional tax imposed.

At least 3.63 million households fall under the lifeline tariff ranging between 0-15 Kwh. Under the current regime low income earners have a leeway of up to 50 units with a subsidised rate.

On the other hand, Kenyans whose energy limit ranges between 16-50 Kwh per month will have to coff up more money to the power distributor. Under the Domestic Ordinary tariff, a consumer using 50 units per month will be charged Sh16.50 per unit as compared to the current tariff cost of Sh2.50 per unit plus the Sh150 charged as fixed cost.

This means, where the consumer currently pays Sh275 for 50 units they will now pay Sh825 under the harmonised tariffs, at least 200 per cent more.

Those with limits ranging between 51-1500 Kwh will also be charged Sh16.50 per unit cost of power compared to Sh12.75 plus the Sh150 fixed charge they are currently paying.

A household using 500 Kwh per month currently paying Sh6,525 will pay Sh8,250 for the same under the new regime.

The proposed harmonised tariffs however reduce power costs for the super rich domestic power consumers whose monthly power bill exceeds 1,500 Kwh. They will be charged Sh16.50 per unit cost of power compared to the current Sh20.57 per Kwh.

A home using 2,000 units of power in a month will pay 19.79 per cent less for electricity paying Sh33,000 compared to Sh41,140 under the current tariff.

ERC held its final public consultation forum on the proposed billing structure in Nairobi yesterday following similar forums in Garissa, Eldoret, Kisumu, Mombasa and Naivasha. It is expected to be used for August billing

“The tour around the country has seen the commission receive various views on the tariff and the commission thanks all ...
Read More

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