It’s no secret that your final electricity bill is highly dependent on the number of units you consume per month; this is because most of the levies charged are computed against the units.
Below is a step by step analysis of a post paid electricity bill.
- Your electricity bill will always have a fixed charge of Ksh 120.00, this amount will always be billed to your account weather there is electricity consumption or not.
- The second charge is the consumption fee. It is a reflection of your energy charges and it’s computed against the number of units you have consumed. The energy charges are as follows:
- Ksh 2.00 per Unit for 0 – 50 Units consumed
- Ksh 8.10 per Unit for 51 – 1,500 Units consumed
- Ksh 18.57 per Unit for units consumed above 1,500
Take for instance you consume 8 units in a given month then each unit will be charged Ksh 2.00 and your consumption charge will be:
8 x 2 = 16 Ksh
- The third part on your billing is the Fuel Cost Charge. There is no standard charge so it varies depending on the prevailing fuel prices and amount of fuel used in power generation.
It is also computed against the number of units you have consumed.
Take for instance: when the fuel cost charge is 548.0 cents/Kwh and you consumed 8 units, then this is how your fuel cost charge will be computed.
548/100 x 8 = 43.84 Ksh
- The fourth part is the Forex adjustment. This also varies depending on the prevailing forex rates and it is also computed against the units you have consumed. So, take for instance the prevailing forex rate is 138.0 cents/Kwh and you consumed 8 units, then this is how your forex charge will be computed:
138/100 x 8 = 11.04 Ksh
- The fifth charge is the Inflation adjustment. This is also a non standard charge and it varies depending on the prevailing inflation rate. The higher the inflation then the higher your inflation adjustment charge, and the lower the inflation, the lower your inflation adjustments charge.
Take for instance, the prevailing inflation adjustment rate is 22.0 points and you consumed 8 Units, then this is how you’re final inflation adjustment charge will be:
22/100 x 8 = 1.76 Ksh
- The sixth charge is the Energy Regulation Commission (ERC) levy. This is a standard levy charge and is also computed against the number of units you have consumed. The levy is usually 3.0 cents/kwh, so when you have consumed 8 units then the final ERC levy will be
3/100 x 8 = 0.24 Ksh
- The seventh charge is the Rural Electrification Programme (REP) levy. This is also a standard levy of 5.00% of the consumption charge, so when your consumption charge is Ksh 16 for consuming 8 units then the REP levy will be:
5/100 x 16 = 0.80 Ksh
- The final charge is the VAT charge of 12.00% which is computed against the fixed charge. Though it is important to note that an additional VAT charge will be added when you exceed 200 Units. So if you consume below 200 Units then your VAT charge will be Ksh 14.40.
12/100 x 120 = 14.40 Ksh
So the total electricity for someone who consumed 8 units will be:
The total bill plus a small rounding adjustment (to the nearest 10 cents) of 0.02 Ksh would be Ksh 208.10
Hope this makes your bill a tad clearer