Kenya Power is set to implement its new tariff by July after getting consent from the government to do so. Click here to read more on this.

The new tariff system increases the fixed charge by 33.3%, from KES 120 to KES 160. It also increases energy charges as follows:

• 0 – 50 Units will be charged at KES 3.70 per unit, from KES 2.00 per unit
• 51 – 1,500 Units will be charged at KES 11.79 per unit, from KES 8.10 per unit
• Above 1,500 Units will be charged at KES 22 per unit from KES 18.57 per unit

Below is a comparison of the number of units you will get from the old and new tariffs, under the assumption that fuel cost charges, forex and inflation adjustments remain constant.

Lets calculate the number of units (using both the old and new tariff) you will get from a token worth KES 500.

You only incur the fixed charge and VAT levy on the first purchase of tokens:

[caption id="attachment_6366" align="alignnone" width="620" caption="statistics gathered at pesatalk"][/caption]

The number of units awarded would be based on the balance left after the fixed charge and VAT levy are deducted.

Old tariff: KES 500 – KES 134.40 = KES 365.60

New tariff: KES 500 – KES 179.20 = KES 320.80

From the above balance, one will definitely get less than 50 units.

Using algebra, “X” represents the number of units awarded, let’s find “X”:

N/B: Fuel charge, forex and inflation adjustment rates , Energy Regulatory Commission (ERC) levy are calculated based on the amount of units awarded. Rural Electrification Project (REP) levy is a percentage of the consumption charge.

[caption id="attachment_6367" align="alignnone" width="579" caption="Statistics gathered at pesatalk"][/caption]

Let’s find the value of “x” i.e. the number of units awarded:

Old rate: 9.21x = KES 365.60

X = 365.60/9.21 = 39.69 Units

New rate: 10.995x = KES 320.80

X = 320.80/10.995 = 29.18 Units

In short, in the previous tariff, a KES 500 token would have gotten you 39.69 Units. In the new tariff, it will reduce to 29.18.

This reflects 36% reduction in the number of units awarded

36.69- 29.18 = 10.51

10.51/29.18 X 100 = 36%