Kenya Power and Lighting Company has dismissed claims that consumers in high-end areas like Lavington and Runda pay more for electricity than customers in slums or low-income areas.
In a statement issued on Thursday, May 8, the utility company clarified that location plays no role in electricity pricing, adding that all customers within the same consumption category are charged identical rates.
“One of the biggest myths about electricity pricing? It depends on where you live. In reality, your electricity cost is based only on how much power you use, not your location,” the company said.
The clarification comes amid persistent public belief that residents in affluent estates are subjected to higher electricity charges compared to those in informal settlements.
“Whether you’re in Lavington or Kawangware, your bill is calculated using a standard tariff structure that’s purely driven by your usage,” KPLC noted, stressing that “all customers in the same consumption category pay the same rates regardless of their neighborhood or location.”
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How the tariff system works
Every new electricity connection begins under the Domestic Ordinary tariff. This applies by default for the first three months, after which KPLC reviews the average monthly consumption. If the usage falls below 30 units per month, the customer is automatically migrated to the Domestic Lifeline tariff, which offers lower per-unit rates (about 12.23 per kWh).
For customers shifting residences, especially those who were previously under the Lifeline tariff, KPLC advises monitoring consumption at the new premises.
“If your average consumption drops to under 30 units for three consecutive months, we’ll automatically move you to the Lifeline category,” said the power provider.
Those who use 31-100kwh, they clustered under DC1 (Domestic – Lifeline) and their cost per unit is about 16.54 per kwh. DC2 is for customers with average consumption of over 100kwh with their rates at around 19.08.
What if you’re on the wrong tariff?
Customers who discover that their residential meters are billed under the commercial tariff are urged to report to their nearest KPLC office.
A site visit will be conducted to confirm the nature of the connection, after which an appropriate tariff change will be implemented.
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What’s in your power bill?
To break down your electricity bill, here are the key components:
Consumption charge: Based on the number of units (kilowatt-hours) used during the billing period.
Fuel Cost Charge (FCC): Adjusts for fluctuations in global oil prices and fuel usage in power generation. This charge trails actual market prices by about a month.
Forex adjustment: Covers currency fluctuations affecting power sector costs, such as loan repayments.
ERC levy: A fee paid to the Energy and Petroleum Regulatory Authority (EPRA).
REP Levy: 5% of the cost of power consumed, directed to the Rural Electrification and Renewable Energy Corporation (REREC).
VAT (16%): Tax collected by Kenya Revenue Authority (KRA) on the total bill.
WARMA Levy: Applied to electricity from hydropower plants exceeding 1MW.
