Reuters Africa this morning reported that Kenya Power plans to reduce power tariffs by 10 per cent by the end of the year if energy costs continue dropping.

International crude oil prices have been on a decline for the past three months, with the latest Murban crude oil price being posted at USD 97.35 in June 2012, reflecting a 12 per cent in crude oil prices since May. Increased water volumes in major dams, due to the heavy down pour that has been experienced in the recent past, could also help cut down power bills.

Speaking to reporters in Mombasa, Kenya Power’s manager in charge of distribution said, “The electricity bill has a variable element of fuel costs which goes up and comes down depending on the fuel used and its cost. Reduction in fuel prices will mean less expenditure in fuel generation…..,” he further added that, “It will only be fair to reduce the burden on our customers too, but that’s only if the reduction is consistent, and does not fluctuate as it has been.”

Mr. Muriithi further stated that, “Due to substantial rainfall, less diesel has been used in electricity generation, meaning the fuel component in your electricity bill will reduce.

Kenya Power is the country’s electricity distributor, supplying 1,250 megawatts of power to the national grid and with a growing customer base of 2.1 million.