The Drop in Electricity Costs in Kenya

Electricity costs should drop in Kenya based on the recent downpours experienced from November. These led to a significant increase in dam water levels. As a result, the Energy Regulatory Authority foresees better prices for consumers in the coming months. Here are the details of the drop in electricity costs.

Electricity Costs in The Past

Kenyans have always had a tug of war with Kenya Power on electricity prices. That’s because, more often than not, the prices tend to get higher each month. Even when promised price drops, consumers still receive either the same bills or higher ones. Such has been the trend in Kenya for a while now.

The expected recent price drop is estimated to stand at Sh2.65 in fuel cost charges. Based on past prices, this will be the lowest it has been since August 2018. The fuel cost charge during that period maintained at Sh2.50 through December 2018. The drop proved to be a relief as consumers had paid fuel cost charges as high as Sh5.35 in May 2018.

In January 2019, prices dropped to Sh2.45, which led consumers to believe in better times ahead. However, February 2019 fuel cost charges shot up to Sh2.74, until April 2019. From there, the increase reached the year’s highest at Sh3.75 in May 2019. The tide then started to turn come June 2019. From a fuel cost charge of Sh3.70, it continued to drop to Sh3.00 in November 2019.

Factors Influencing the Cost of Electricity

A factor that consumers may fail to realize is the role of fuel cost charges. Whenever the dam water levels drop, alternatives have to come into play. The alternate options help to ensure that Kenyans still get uninterrupted power to function. However, it comes at a higher price point. That’s due to the use of more thermal energy to supplement what the dams can produce.

The government, however, has plans in place to use green energy instead of thermal energy. These include options like wind and geothermal energy, which are less costly alternatives.

How Soon Can Kenyans Expect the Price Drop?

The Kenya Meteorological Department continues to warn of rains through the entire festive season of 2019. The downpours will play a vital role in maintaining dam water levels until the March long rains. Kenyans can, therefore, look forward to paying lower for longer this time around. Price drops should start to come in effect from December 2019 onwards.