The Kenya Power and Lighting Company (KPLC) has shown a drop in token prices in March as compared to prices in February.
According to a study on the tokens received this month as compared to last month, there has been an increase in the ammount of tokens received with the same ammount.
Therefore, tokens purchased on February 25 and March 12 revealed a decrease in both the Value Added Tax (VAT) and Fuel Energy charges thus showing a drop on the overall token prices in March.
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Kenyans purchasing Ksh300 tokens this month are now receiving an additional 0.05 units compared to what they received last month with the same amount. KPLC charged Ksh34.88 for VAT and Ksh43.56 for Fuel Energy Charge in Febr6. In March the VAT was reduced to Ksh34.18 while the Fuel Energy Charge was reduced to Ksh38.46.
Reports indicate that rains that were witnessed in the recent past have contributed to cheap hydropower with the reduction of the dollar against the shilling also playing a huge role in the reduction of tokens.
However, the prices have not dropped by a huge margin due to the fact that some other costs were increased eg the Forex charge for a Ksh300 purchase was put at Ksh33.87. However, in March, that charge was increased to Ksh38.89.
“This money is collected by Kenya Power and all of it is passed on directly to electricity generation companies, who in turn pay fuel suppliers,” Kenya Power Explains.
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“Fuel Energy Charge is the added cost or rebates to the consumers as a result of fluctuations in world prices as well as fluctuations in the quantity of oil consumed by electricity generation. The fuel cost charge lags one month behind the actual price of the fuel.”