Power fuel cost levy’s strikes 14-month high

Google+ Pinterest LinkedIn Tumblr +

The latest data released by Energy and Petroleum Regulatory Authority (EPRA) on Friday showed that businesses and Households will dig deeper into their pockets to pay electricity bills.

This is due to the fuel cost charge (FCC) for February 2021 is Sh2.61 per kilowatt-hour, the highest charge rate in 14 months. In January 2021, the charge was Sh2.58.

“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 261 Kenya cents per kWh for all meter readings to be taken in February 2021,” EPRA stated last Friday.

The FCC has gradually increased as the global oil prices bounced back which increase the cost of diesel used to generate electricity.

As per the latest monthly review by EPRA, the price of diesel increased by Sh4.57 per litre.

A report by Reuters indicated that the oil prices hit the highest mark last Monday in just over a year, with Brent futures hit beyond $60 (Sh6,566.40) a barrel.

In the same breath, diesel and kerosene increased as well in January due to rising costs, which trickled down to poor households and transporters.

Share.

About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

Leave A Reply