How KPLC bills Kenyans: Why you are given only 24 units for KSh500

The issue of electricity prices has been a thorn in the flesh of many Kenyans in the recent past.

A huge section of Kenyans feel that the Kenya Power and Lightening Company (KPLC) is exploiting them with exorbitant power prices. To them, KPLC is taking advantage of its monopoly in the industry to "extort us". 

Just last week, the company announced that it has sunk into KSh1.1 billion net loss for the half year that ended December.

The loss was blamed on the weak shilling and the 15 percent electricity tariff cut that was effected in January last year as a State directive to cushion Kenyans. But Kenyans cannot fathom how KPLC is making losses with the high charges Kenyans are subjected to.

How KPLC bills Kenyans

I recently bought tokens worth KSh500 and I was given 24.43 units. How did they bill me?

VAT: This statutory levy amounting to 16% of the total bill and is passed on to the Kenya Revenue Authority (KRA).

Fuel Energy Charge: This is the added cost or rebates to the consumers as a result of fluctuations in world prices as well as fluctuations in the quantity of oil consumed by electricity generation. The fuel cost charge lags one month behind the actual the actual price of the fuel. This money is collected by KPLC and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers.

Forex Charge: The foreign exchange component is related to the fluctuation of hard currencies against the Kenya Shilling for expenditure related to the power sector e.g. projects loan repayments.

EPRA Charge: This is levy passed on to the Energy and Petroleum Regulatory Authority (EPRA), the regulatory arm of the energy sector. It is currently set at 3 cents per kilowatt hour.

WRA Charge:  WRA stands for Water Resource Authority. The charge is for energy purchased from hydropower plants above 1MW.

REP Charge: This is 5% levy on the cost of the units of power consumed by a customer. It is passed on to the Rural Electrification and Renewable Energy Corporation (REREC) for implementation of the rural electrification projects.

Inflation adjustment: Factors include the Underlying Consumer Price Index as posted by Kenya National Bureau of Statistics and the Consumer Prices Index for all urban consumers (CPI - U) for the US city average for all items 1982 - 84 as published by the United States Department of Labour Statistics.