Kenya Power Dismisses Alleged 20% Inflation in Electricity Bills

Kenya Power has denied allegations of inflating electricity bills as reported by Business Daily. The news outlet reported that the utility company had increased electricity costs by about 20% for power that was not consumed by customers. The Auditor General, Nancy Gathungu, was quoted in the report stating that nearly a fifth of the bill to consumers couldn’t be associated with actual consumption nor attributed to a specific consumer. Gathungu’s report also pointed to mathematical errors, outdated reports, and discrepancies due to incorrect calculations of system losses.

Responding to these claims, Kenya Power stated that all electricity bills were calculated based on the consumption difference between the current and previous meter reading. Additionally, they affirmed that base tariffs, levies, and taxes were applied to this consumption to generate the customer’s monthly bill. The firm also conducts monthly regulatory checks to verify that customers are billed at approved rates.

The company acknowledged some system power losses during transmission but clarified that the Energy Act of 2019 allows for this. According to the Act, the regulator sets a limit for allowable system losses, which is included in the tariff. In the current financial year, the limit is set at 18.5%.

Kenya Power confirmed that they purchase electricity from fifty-eight power suppliers through one hundred verified delivery points, as required by their respective Power Purchase Agreements.