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Kenya Power has responded to an uproar from Kenyans following reports that the company has been inflating electricity bills by up to 20%.
In a statement, Kenya Power said that the report by Business Daily was not factual and was aimed at tarnishing the company name.
“Kenya Power has taken note of a misleading article titled Auditor reveals how Kenya Power inflates electricity bills that was published in the Business Daily newspaper on 7th August, 2023. The article quotes a report by the Auditor General that was presented before a parliamentary committee.
“Kenya Power takes exception to the contents of the article, which are not only non- factual but also geared towards building a false narrative around the cost of electricity and tarnishing the brand,” the statement read in part.
The company explained that it operates in a regulated environment and all charges in Kenyans’ bills are approved by the Energy and Petroleum Regulatory Authority.
The statement added that all electricity bills are computed based on customer consumption which is the difference between the current meter reading and the previous reading (as taken during the previous month).
“The approved base tariffs, levies and taxes are then applied to the consumption to compute the customer's monthly bill,” Kenya Power said.
According to the utility firm, part of power system losses are inevitable during transmission and distribution of power; therefore, the regulator sets a threshold for the allowable system losses that is factored in the tariff.
“In the current financial year, the regulator has allowed system losses up to a maximum of 18.5%. Kenya Power meets the cost of system losses incurred above what is allowed,” the statement continued.
The firm added that each month, EPRA checks and verifies that Kenya Power charges customers based on the approved rates.
What are system losses and how do they contribute to Kenyans' electricity bills?
Kenya Power system losses refer to the amount of electricity lost in the process of generating, transmitting, and distributing power due to technical and non-technical reasons.
System losses add to the operational costs of Kenya Power, which are ultimately passed on to consumers through their electricity bills.
The losses incurred by Kenya Power are factored into the tariff calculation by the Energy and Petroleum Regulatory Authority (EPRA).
To address the issue of system losses, Kenya Power has been implementing measures such as upgrading transmission and distribution networks, investing in new power lines, and combating power theft.
These efforts aim to reduce losses and improve the overall efficiency of the power system, which can ultimately help in minimizing the impact on consumers' bills.