The Energy and Petroleum Regulatory Authority (EPRA) on Thursday denied approving a 20% hike in electricity prices as mooted by Kenya Power.
In a statement, Director General Dr. Pavel Oimeke stressed the application submitted by Kenya Power was still being reviewed and no approval had been granted as yet.
“Once the internal review of the application has been completed, in accordance with the Energy Act 2019 and the Constitution of Kenya 2010, the Authority will embark on stakeholder engagements and public hearings on the application before the final approval is granted,” Dr Oimeke stated in the statement.
Kenya Power had submitted its application for the tariff hike in 2019.
Reports had earlier indicated that the regulator had approved Kenya Power’s plan. However, any changes to the tariffs would require public participation.
The hike is integral for Kenya Power’s turn-around plan, with the firm currently bogged down by the cost of long-term power-purchase agreements.
For usage of less than 100 Kilowatts per month, Kenya Power wants to raise the unit price from Ksh10 to Ksh12.50.
For usage of more than 100 units, the cost per unit will rise from Ksh15.80 to Ksh19.53.
According to Kenya Power, a review of power prices was necessary after present tariffs lapsed in 2019.
EPRA had in 2018 introduced temporary tariffs that brought down power prices after a directive from President Uhuru Kenyatta.
Uhuru was reacting to widespread complaints from consumers over newly introduced tariffs that had seen their monthly bills double.
KPLC now argues that with the expiry of the temporary tariffs, they are justified to review the price upwards.
Approval of their application to EPRA had been delayed by the Covid-19 pandemic, causing them to write a protest letter over the delay.
The company recently issued its third profit warning in a row, with financial results expected in January 2021.