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{
    "id": 319782,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/319782/?format=api",
    "text_counter": 156,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "Mr. Deputy Speaker, Sir, the fuel cost charge is a charge that Kenya Power levies to recover the cost of fuel used to generate part of the energy that is consumed each month. So, it is not possible to have a uniform rate like we have for fuel, because the consumption per customer is different. We also have a charge called Foreign Exchange Rate Fluctuation Adjustment. We do not control that. It is a rate that is basically on the currencies and is levied against the Kenya shilling in terms of foreign based payments in the power subsector, for example, the electricity project loan repayments and others. The inflation adjustment is also based on the 50 per cent national underlying inflation for 70 per cent of the component and the remaining 30 per cent is pegged on international inflation. Mr. Deputy Speaker, Sir, we also have the Value Added Tax (VAT). It is important for this House to know that Kenya Power is a designated collector of VAT for the Government. It is, therefore, charging currently at 12 per cent. Mr. Deputy Speaker, Sir, finally, there is the ERC Levy. This is a levy meant to support the operations of the sector regulator; that is, the ERC. It is currently three cents per unit."
}