The Energy Regulatory Commission (ERC) has not abolished the electricity subsidies for the low-income households.
This implies that low power consumers who consume 50 units of electricity and below in a month will continue paying lower tariffs in accordance with the subsidy.
“Lifeline tariff for bottom-end consumers will remain,” said Pavel Oimeke the ERC director-general. Lifeline tariff is a government policy tool to cushion the poor from high costs of electricity.
Early this month, the state agency said that it would create a platform that will ensure every domestic consumer have uniform charges in April 2018.
The move was made with an aim to encourage more use of the utility by large domestic consumers who felt punished by paying more for the subsidy to cover for the low-income households.
According to Mr. Oimeke, the move to retain the subsidy “is common practice to support the economically disadvantaged amongst us in the electricity subsector.”
The lower consumers of 50 units and below pay Sh13.65 per unit inclusive of fixed charges, taxes and pass through costs. Households that consume power of more than 51 units pay 20.34 per unit inclusive of all charges. These households pay sh7 more than their counterparts.