Electricity fuel cost levy drops to 13-month low

The fuel cost levy has fallen to its lowest in 13 months due to heavy rains that have filled the country’s power generation dams.

The Energy and Petroleum Regulatory Authority (EPRA) in its latest data released on Friday shows that the Fuel Cost Charge (FCC) is Sh2.50 per kilowatt hour. The last time FCC fell close to this level was in January last year when it stood at Sh2.45.

The latest price marks a drop from the Sh2.65 per kilowatt hour last month and Sh3 in November last year, offering Kenyans hope of reduction in power bills.

This is a Sh0.15 drop from last December, meaning that businesses and households will make more savings from their monthly consumption of electricity.

“Pursuant to clause I of Part III of the Schedule of Tariffs 2018, 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 250 Kenya cents per kWh for all meter readings to be taken in January, 2020,” EPRA said.

FCC levy is influenced by the share of electricity from diesel generators and has been on a decline following the heavy rains that started last November.

The continued fall in FCC boosts the State’s goal to provide cheaper power and become more competitive in matching other African nations such as Ethiopia, South Africa and Egypt in the drive for new investments.

Energy Principal Secretary Joseph Njoroge last month said that FCC may not rise in the period up to March.

The drop comes at a time the share of expensive thermal power in the national grid has reduced to 13.4 percent, the lowest in three years as government turns to more green energy sources.