Electricity consumers are set to pay an additional Ksh4.16 per unit following the latest charges announced by the Energy and Petroleum Regulatory Authority (EPRA).

The revised charges, contained in a Gazette Notice dated September 18 and seen by Vantage Ke on September 20, apply to all electricity meter readings taken during September 2026. This means households and businesses will feel the impact on their next power bills.

The largest component is the Fuel Energy Cost Charge, which has been set at Ksh3 per unit. The charge covers the cost of fuel used to operate thermal power plants, including Kipevu III and Rabai.

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Ag. Director General for EPRA, Dr. (Eng.) Joseph Oketch, during IAEA's (International Atomic Energy Agency) Regional Meeting on the Development of Approaches to Climate, Land-use, Energy and Water Systems (CLEWS) in Nairobi. /PHOTO

“Pursuant to Clause 1 of Part III of the Schedule of Tariffs 2023, notice is given that all Prices for Electrical Energy specified in Part II of the said Schedule will be liable to a Fuel Energy Cost Charge of Plus 300 Kenya cents per kWh for all meter readings to be taken in September 2026,” EPRA stated.

Another major component is the Foreign Exchange Fluctuation Adjustment, which stands at approximately Ksh1.14 per unit.

The adjustment is intended to cushion electricity suppliers from fluctuations in the value of the Kenyan shilling and is linked to foreign exchange costs amounting to Ksh1.32 billion.

The third charge is the Water Resource Management Authority (WRMA) Levy, which stands at 1.48 cents per unit.

The levy is imposed because hydroelectric power stations, including Gitaru, Kiambere and Turkwel, rely on water resources to generate electricity.

Combined, the three charges amount to approximately Ksh4.16 per unit. A household consuming 100 units in a month would therefore incur about Ksh416 through the three charges alone.

New Net Metering Rules

In a separate notice, EPRA also amended the 2023 tariff schedule, introducing changes affecting customers who generate their own renewable electricity under the net metering programme.

Under the revised rules, customers who export surplus electricity to the national grid will receive credit for only half of the power they feed into the system.

EPRA also defined the unauthorised feeding of electricity into the Kenya Power and Lighting Company (KPLC) network as “dumping”. Customers found engaging in the practice without approval will be charged for the electricity supplied to the grid at the applicable base tariff.

Domestic electricity consumers will further be classified into three categories based on their average consumption over three months.

The bands will cover households using up to 30 units, those consuming between 30 and 100 units, and customers using between 100 and 15,000 units.

EPRA has also set a special tariff for electric vehicle charging. Electric vehicle charging customers will pay Ksh16 per unit during normal hours, with the rate dropping to Ksh8 per unit during off-peak periods.

Kenya Power Raises Renewable Energy Concerns

The changes come as Kenya Power moves to slow down the connection of new wind and solar power projects, citing concerns over grid stability and the rising cost of electricity as variable renewable energy takes up a larger share of the national grid.

Variable renewable energy currently accounts for more than 21 per cent of Kenya's installed grid capacity, while wind and solar power contribute about 34 per cent of peak daytime electricity demand.

However, fluctuations in wind and solar generation require additional backup power and present challenges in managing the national grid.

Kenya Power is consequently requiring new wind and solar projects to incorporate battery storage systems capable of providing between three and four hours of backup power.

The utility is also prioritising geothermal and hydroelectric generation as it seeks to maintain grid stability while managing the country's growing renewable energy capacity.

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A photo of Kenya Power technicians at work on a transformer. /THE EASTLEIGH VOICE