Kenya’s New Particular Tariff For E-Mobility


Kenya’s Power and Petroleum Regulatory Authority (EPRA) just lately accepted new electrical energy tariffs efficient 1 April. As a part of this newest tariff overview, EPRA launched a particular tariff regime for the electrical mobility sector. EPRA additionally expanded the Time-of-Use (TOU) tariff construction to incorporate the small industrial sector, amongst others. Kenya Energy, the nation’s major electrical energy retailer, had pushed for the particular e-mobility tariff. As a key stakeholder within the e-mobility ecosystem, Kenya Energy has been very lively in selling e-mobility. Kenya Energy has additionally recognized e-mobility as one of many key areas that may assist maintain profitability and develop shareholder worth.

Kenya Energy is trying to leverage new enterprise frontiers as a part of its 5-year Strategic Plan for the interval 2023–2028. Among the key pillars of this new progress plan embody this sturdy concentrate on electrical mobility, getting extra Kenyans to shift to electrical cooking, power storage, and electrification of a number of different sectors to assist decarbonization. Kenya Energy has additionally introduced plans to transition its personal fleet to electrical.

The brand new e-mobility tariff has been set at 16 Kenyan shillings for power consumption as much as 15,000 kWh throughout peak durations and eight Kenyan shillings per kWh throughout off-peak durations, additionally as much as 15,000 kWh. 16 Kenyan shillings works out to 12 US cents/kWh on the present alternate price. That is earlier than taxes and different costs are added to the ultimate price the customers can pay. This additionally means the tariff beneath the TOU program shall be simply 6 US cents/kWh. The 16 shillings is decrease than the final home tariff, which is 20.97 shillings per kWh for consumption above 100 kWh, and the small industrial tariff, which has been set at 20.18 shillings/kWh for consumption above 100 kWh. The e-mobility tariff can be fastened till 2025/2026.

The Africa E-Mobility Alliance (AfEMA) just lately printed a technical transient the place they break down Kenya’s new tariff for the e-mobility sector. They go on to take a deeper have a look at how the brand new tariffs will have an effect on the electrical mobility sector. From the illustration beneath, Kenya’s electrical energy tariffs are loaded with a whole lot of taxes, after which there may be VAT as effectively. A client’s electrical energy consumption makes up about 49% of the ultimate quantity the client pays. The remaining 51% is made up of a number of levies and taxes together with a International Trade Fee Fluctuation Adjustment (FERFA) and Gas Price Cost (FCC). Stimatracker says FERFA is a variable price per kWh, printed month-to-month by KPLC (Kenya Energy). This contains the sum of the overseas foreign money prices incurred by KenGen (the nation’s major electrical energy era firm), the sum of the overseas foreign money prices incurred by KPLC aside from these prices regarding Electrical Energy Producer, and the sum of the overseas foreign money prices incurred by KenGen. Stimatracker additionally says the FCC pertains to a variable price per kWh, printed month-to-month by KPLC within the Kenya Gazette (however not on their web site). It’s reflective of the fee (to KPLC) of producing electrical energy throughout the earlier month.

All of those elements imply that the ultimate peak tariff for the e-mobility sector shall be round 32 Kenyan shillings/kWh (24 USD cents/kWh) and the off-peak tariff shall be 22 Kenyan shillings/kWh (16 USD cents/kWh). Which means operators of electrical mobility will get pleasure from a lot decrease tariffs in comparison with the final residential, industrial, and industrial tariffs, which begin from above 21 Kenyan shillings earlier than levies and taxes are added onto the costs. Kenya’s electrical energy tariffs are typically a lot greater than these in neighboring nations equivalent to Uganda and Tanzania.

AfEMA additionally seems at how these new tariffs have an effect on the completely different car segments, as illustrated beneath.

For extra particulars on the brand new tariffs  and what it means for the electrical mobility sector, take a look at AfEMA’s Technical Temporary right here.

Pictures courtesy of AfEMA


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