In a recent development, Kenya Power has increased the prices of electricity tokens in response to a review of electricity costs.
Media reports have confirmed that this change was implemented last week, evident from the variance in token values between purchases made on October 2 and Tuesday, October 10.
On October 2, customers who bought tokens worth Ksh200 received 7.52 tokens, while today, the same amount only yields 7.1 tokens.
The alteration in token value can be attributed to the adjustment in the Fuel Energy Charge, which rose from Ksh31.28 to Ksh35.07. This change was a direct consequence of the Energy and Petroleum Regulatory Authority (EPRA) increasing fuel prices on September 14.
During the October review, Super Petrol prices surged by Ksh16.96 per litre, Diesel increased by Ksh21.32 per litre, and Kerosene prices rose by Ksh33.13 per litre.
Explaining the Fuel Energy Charge, Kenya Power clarified that it represents the additional cost or rebates incurred due to fluctuations in global oil prices and the volume of oil consumed for electricity generation. This charge lags one month behind the actual fuel price, with Kenya Power collecting it and passing it on entirely to electricity generation companies, who, in turn, pay fuel suppliers.
Furthermore, the escalation in token prices was partly influenced by the strength of the US dollar against the Kenyan shilling. Over the past week, the dollar's exchange rate has exceeded Ksh145, currently reaching Ksh148.
Nevertheless, this marginal price increase was partially offset by a reduction in the EPRA charge, which decreased from Ksh0.6 to Ksh0.56.
Additionally, the Rural Electrification Programme (REP) Charge was lowered to Ksh5.88 from last week's Ksh6.23. The REP Charge constitutes a 5 percent levy on the cost of power units consumed by customers, with the funds channeled to the Rural Electrification Authority (REA) for rural electrification projects, as explained by the utility company on its website.
If fuel prices continue to rise in the October EPRA review, further adjustments are expected to align with market changes.