Kenya Power announced that it will lower this month's fuel levy charged from 742 cents/kwh to 697 cents/kwh, following the heavy rains that have been encountered lately. I embarked to calculate how low this months electricity bill would be following this reduction.

The fuel levy charge accounts for about 21% of your overall electricity bill and the announced reduction in the levy is of  6%

742 cents/kwh - 697 cents/kwh = 45 cents/kwh

45 cents/kwh is the reduction in fuel charge.

45/742 X 100 = 6%

From my calculations and statistical analysis, your electricity bill would reduce by about 1.6% following the reduction in fuel levy charge.

This is why:

Below is a comparison of a bill under April’s fuel levy and a bill under May’s expected fuel levy to help give a clearer picture of the extent to which your electricity bill would decrease. The calculations are under the assumption that fuel cost charges, forex and inflation adjustments remain constant, and that 8 units were consumed.

This different under the two different fuel cost levy is over KES 3.60

KES 223.60 – KES 220.00 = KES 3.60

Translating in a decrease of 1.6%

3.60/223.60 X 100 = 1.6%

I guess the rains are not much of a blessing when it comes to your electricity bill, right?

You should expect an increase in your electricity bill, in about 2 months time, after Kenya Power got the green light to implement a new electricity tariff that would increase your electricity bill.

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