Kenya’s Energy Regulator Approves New Electricity Tariffs

  • The e-mobility tariff and the expansion of the Time of Use (TOU) tariff to other sectors have been included as part of the approved tariffs.
  • This new e-mobility tariff and the new TOU program for the small commercial categories are set at 50% of the energy charge.

Kenya Power Lighting Company PLC (Kenya Power) recently applied for a tariff review to Kenya’s energy regulator EPRA. An outstanding component of Kenya’s Power’s initial application was a proposed special tariff for electric mobility. As a critical stakeholder in the e-mobility ecosystem, Kenya Power has actively promoted e-mobility and has identified e-mobility as one of the vital areas that will help sustain profitability and grow shareholders’ value.

The energy regulator announced the approved tariffs to be effective from the 1st of April. As part of the approved tariffs, the e-mobility tariff has been included along with the expansion of the Time of Use (TOU) tariff to other sectors, including this e-mobility area and the small commercial segment. The new e-mobility tariff has been set at 16 Kenyan shillings for energy consumption up to 15,000 kWh during peak periods and 8 Kenyan shillings per kWh during off-peak periods. 16 Kenya shillings work out to 12 US cents/kWh at the current exchange rate. This is before taxes and other charges are added to the final cost the consumers will pay. This also means the tariff under the TOU program will be just 6 US cents/kWh. The 16 shillings are lower than the general domestic tariff, which is 20.97 per kWh for consumption above 100kWh and the small commercial tariff, which has been set at 20.18 shillings/kWh for consumption above 100kWh. The e-mobility tariff is also fixed until 2025/2026.

Kenya has an installed electricity generation capacity of 3,321 MW. The peak demand is 2,132MW. It is the low overnight off-peak demand of 1,100MW that Kenya Power wants to exploit initially to power Kenya’s transition to electric mobility. Electric vehicles in Kenya will be charged using some very clean electricity. This new e-mobility tariff, as well as the new TOU program for the small commercial categories, is set at 50% of the energy charge, which will help boost the uptake of e-mobility.

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