The Kenya Power and Lightning Company (KPLC) has revealed that the adjustment of fuel prices and the inflation situation in Kenya are the reasons why the cost of electricity tokens have increased.
The public liability company stated that the Energy and Petroleum Regulatory Authority (EPRA) adjusts the prices of the electricity tokens every month.
In their words, “The regulator has adjusted the fuel cost and inflation components of the bill, hence the increase in the token price. This is done monthly by EPRA.”
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The token price increase has resulted in users having to pay more than before for said electricity tokens.
A number of customers stated that the amount of electricity tokens they purchase usually, has reduced.
Read Also: KPLC Not Open To Banks Selling Electricity Tokens
The decision is occurring after the Kenya Power and Lightning Company (KPLC) put in place a 21 percent increase in the electricity charges in direct correlation with the changes announced by the Energy and Petroleum Regulatory Authority (EPRA).
After said adjustments the fuel cost charge rose to 6.80 Kenyan Shillings per unit of power from 4.63 Kenyan Shillings.
The review by the Energy and Petroleum Regulatory Authority (EPRA) also led to the foreign exchange adjustment rising from 73 cents to a high of 1.37 Kenyan Shillings for the same amount of electricity bought.
On Wednesday the 14th of September 2022, the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices. With the latest prices review, the cost of Super Petrol hit 179.30 Kenyan Shillings per litre which marked a significant increase of 20 Kenyan Shillings, the cost of Kerosene hit 147.94 Kenyan Shillings per litre marking an increase of 20 Kenyan Shillings and Diesel hit 165 Kenyan Shillings per litre marking an increase of 25 Kenyan Shillings.
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The statement by the Energy and Petroleum Regulatory Authority (EPRA) stated that, “Taking into account the weighted average cost of imported refined petroleum products and in line with government policy to progressively remove subsidy on petroleum fuels, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Ksh 20.18 per litre, Ksh 25 per litre and Ksh 20 per litre respectively.”
The price review came after President William Ruth made it known that the current fuel subsidy was not sustainable. The President during his inaugural speech, revealed that the East African nation of Kenya had so far, spent 144 billion Kenyan Shillings on the current fuel subsidy program.
Read Also: KPLC Receives 7 Billion Kenyan Shilling Subsidy To Reduce Bills By 15 Percent
The Director General of the Energy and Petroleum Regulatory Authority (EPRA); Daniel Kiptoo says that the Kenyan government is looking to broaden its investments into renewal energy so as to protect Kenyans from the increased costs of electricity and fuel.
The Director General also added that there are plans to also make use of geothermal energy to protect Kenyans from pressure from the current inflation.
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