Get ready for higher electricity bills this month as Kenya Power adjusts the Forex Adjustment and Fuel Cost Charge components of electricity bills upwards. Electricity consumers will this month be required to pay KES 6.08 per kilowatt hour in fuel cost levy, up from KES 5.99 per kilowatt hours in September 2012. The Forex Adjustment rate has been increased to KES 2.24 per unit from KES 1.44 per unit in September 2012.
The fuel cost is determined by the amount of diesel-electricity on the national grid which mainly rises due to fall in the amount of hydro-generated electricity, while the Forex element reflects the strength of the shilling against major currencies.
Below is a demonstration of how high electricity bills will increase this month. The demonstration takes into assumption that 18 units of electricity was consumed in both months, i.e. September 2012 and August 2012.
This reflects a 5.14 percent rise in electricity bills this month.
Kenya Power, last month, September 2012, increased the Fuel Cost charge from KES 5.66 per kilowatt hour to KES 5.99 per kilowatt hour though reduced the Forex Adjustment rate from KES 2.08 per unit to KES 1.44 per unit, resulting in a marginal drop in electricity bills in September 2012.