The Energy and Petroleum Regulatory Authority (EPRA) shed light on the intricacies of the electricity tariff framework in Kenya.

Empowered by Section 11(c) of the Energy Act, 2019, EPRA maintains the authority to set, review, and adjust electric power tariffs, ensuring a balance between affordability for consumers and sustainability for service providers.

According to the statement, EPRA operates within a three-year Electricity Tariff Control Period (TCP) during which it oversees the recovery of total costs associated with generation, transmission, and distribution from customers.

This recovery is achieved through a tariff framework consisting of three components: the Base Tariff, Pass-through Costs, and Taxes and Levies.

"The Base Tariff comprises the cost of generation, transmission, and distribution incurred by utilities such as Kenya Power and Lighting Company (KPLC), Kenya Electricity Generating Company (KenGen), among others," EPRA stated.

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These costs are meticulously calculated based on existing contracts and operational expenses, with due consideration given to currency exchange rates and inflation indices.

EPRA also clarified the nature of Pass-through Costs, emphasizing their role as additional variable expenses not included in the Base Tariff.

These costs, which fluctuate monthly, encompass factors such as fuel prices, exchange rate differentials, and additional generation expenses incurred post-tariff approval.

The regulatory authority emphasized its commitment to ensuring that tariffs remain "just and reasonable," in line with the Energy Act, 2019.

"Tariffs charged for electrical energy supplied shall enable licensees to maintain financial integrity, attract capital, and operate efficiently," the statement affirmed, highlighting the delicate balance between consumer affordability and industry sustainability.

With this transparent elucidation of the electricity tariff framework, EPRA aims to foster greater understanding and accountability within the energy sector while striving to meet the evolving needs of both consumers and service providers.

As Kenya continues its trajectory towards sustainable energy solutions, EPRA remains steadfast in its role as a guardian of fair and equitable electricity tariffs, poised to adapt to the dynamic landscape of the energy industry.