Kenya Power has encountered regulatory resistance in its fresh application to raise electricity prices after a temporary reduction of power charges for 5.7 million consumers expired in July.
The Energy and Petroleum Regulatory Authority (EPRA) — the electricity sector regulator — says it has received an application for tariff increases from Kenya Power, adding that the submission would likely be rejected.
However, a Kenya Power director Wednesday said the electricity distributor was only seeking what was taken away from the firm last year and warned that the company would aggressively resist attempts by the regulator to reject the higher tariffs.
This now sets the stage for a confrontation as Kenya seeks to make energy costs competitive compared with other African nations such as Ethiopia, South Africa and Egypt in the quest for new investments.
The energy watchdog last year cut retail electricity prices following an order from President Uhuru Kenyatta after widespread complaints from some domestic customers and small businesses about a costly tariff introduced last July.