How EPRA Inflated Power Prices by Ksh70 Billion in 5 Years



Kenyans paid an extra Sh70 billion in power bills between 2018 and February 2023. According to Auditor General Nancy Gathungu's report, the Energy and Petroleum Regulatory Authority, EPRA, added illegal charges to their monthly fuel surcharge prompting the Kenya Power and Lighting Company, KPLC, to inflate its prices. 

Gathungu's report indicates that the regulator misapplied the formula that calculates monthly electricity bills. As a result, they ended up inflating electricity bills by up to Ksh4.4 per unit from January 2018 onwards.   

EPRA neglected to adhere to the established and authorized formula by the energy regulator for determining the monthly surcharge, intended to cover the expenses associated with fuel-based electricity generation. This oversight led to higher-than-expected bills.

The Auditor-General’s findings also emphasized that Kenya Power had imposed excessive charges on consumers, amounting to Sh23.17 billion in the period leading up to June 2023. EPRA had included additional charges beyond the prescribed formula when computing the fuel energy charge (FEC), thereby enabling Kenya Power to collect these extra fees.



The report highlighted that between July 2022 and June 2023, consumers ended up paying Sh57.33 billion instead of Sh34.15billion.

In December 2023, if EPRA had applied the officially published formula, consumers would have been billed at a rate of KSh2.94 per unit. Instead, they were invoiced at KSh3.98 per unit.

In June 2018 for instance, Kenyans should have paid Sh1.79 per unit as per the calculations by the formula. They were charged Sh4.79 per unit. 

The excessive billing and elevated electricity rates have greatly affected consumers, worsening Kenya's cost of living crisis. The heightened electricity costs have fueled inflation, leading to price hikes of up to 17.5 percent.

EPRA however has since dismissed the claims of the report saying losses resulting from power transmission were factored into the tariff. 



Comments

Post a Comment

Popular posts from this blog

Doctors' Strike: Promising Development as Govt Allocates Sh2.4 billion for Medical Interns

Image
The government has called upon the Kenya Medical Practitioners and Dentists Union (KMPDU) to halt the current strike by medical professionals, citing the allocation of Sh2.4 billion for the placement of medical interns. Felix Koskei, the Head of Public Service, announced that the government has acquired Sh2.4 billion to support the prompt deployment of the 2023/24 batch of medical student interns, following the guidelines established by the Salaries and Remuneration Commission (SRC). Sources inside State house on Tuesday told a local media outlet that President William Ruto before flying out of the country had directed the Health and Treasury ministries as well as Mr. Koskei to resolve the deadlock over the strike before he flies back later in the week.  "In light of this development, the leadership of the KMPDU is urged to adhere to its obligations as outlined in the court's orders by promptly suspending the ongoing industrial action," Koskei said in a statement release
Read more

Government Introduces Green Number Plates for Electric Vehicles, Motorcycles

Image
The government has introduced an innovative program aimed at encouraging and accelerating the acceptance of electric vehicles (EVs) nationwide by issuing unique license plates for these vehicles. Transport Cabinet Secretary Kipchumba Murkomen has revealed plans to introduce distinct green-hued license plates for electric vehicles (EVs). The declaration was made during the unveiling of the e-mobility policy blueprint at the Kenyatta International Convention Centre (KICC) on Wednesday, March 27.  These unique plates will be provided to drivers who own electric cars and motorcycles, signifying a significant advancement in Kenya's move towards eco-friendly transportation. President William Ruto arrives in an MG Commet EV at KICC during the Africa Climate Summit in September 2023.  The rollout of green license plates is a component of a wider effort outlined in the recently revealed e-mobility policy draft, designed to hasten Kenya's shift towards electric transportation. This polic
Read more

Reason Why Maraga Team Want Separation of APs and Kenya Police at Senior Level

Image
Retired Chief Justice David Maraga handing over the report of the National Taskforce on Police Reforms to the president on November 16, 2023, at Statehouse, Nairobi. Some time at the beginning of the Kenya Kwanza administration in late 2022, President William Ruto established the National Taskforce on Police and Prisons Reforms chaired by former Chief Justice David Maraga.  Last year Maraga presented the report of the National Taskforce on Police Reforms at Statehouse Nairobi. The team sought reforms aimed at addressing major challenges bedeviling the police service. The reforms await implementation.  If implemented, there may soon be alterations in the responsibilities carried out by police officers, potentially impacting your safety after the team proposed separating the Kenya Police and Administration Police services in a massive restructuring operation. Prior to the enactment of the 2010 Constitution, the Administration Police primarily focused on administrative and protective poli
Read more