July 1, 2024

Kenya Power reverses decision on billing breakdown

2 min read
Kenya Power reverses decision on billing breakdown

Kenya Power reverses decision on billing breakdown of electricity bills for pre-paid customers

Kenya Power reverses decision on billing breakdown of electricity bills for pre-paid customers.

Director-general of the Energy and Petroleum Regulatory Authority (Epra), Daniel Kiptoo, announced that the organization will write to Kenya Power to overturn the decision, which it claims was issued arbitrarily.

Kenya Power discontinued delivering a breakdown of bills that included costs for the water regulator, foreign exchange, fuel adjustment surcharges, VAT, and Epra levy.

Since last month, the power distributor has combined these costs, which subsequently show up as one on the payment statements given to customers with pre-paid billing.

“They should not have gone ahead and altered it because this is an alteration of the billing structure and any change to the customer shall be subject to approval by the regulator,” Mr. Kiptoo said.

“Transparency is paramount and so the more information the better. Reducing the information is an issue that we have a big problem with. We are going to write to them and, yes, the breakdown will be reinstated.”

Kenya Power justified the choice, claiming it was made in response to customer feedback that indicated they preferred less information on their power bills.

The energy regulator, however, asserts that Kenya Power wrote to them claiming that ceasing to provide a breakdown of consumer invoices would save the company an estimated Sh80 million per month.

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Customer bills now only show the amount spent, units bought, token amount and the lumpsum of all the pass-through costs under “other charges”.

Parliament has also flagged Kenya Power over the decision amid growing public uproar over the high cost of power. 

Without a breakdown, customers are unable to gauge the impact of increased use of thermal power and the weakening shilling on their power bills.

Kenya Power’s decision came at a time of increased fuel surcharge and forex adjustments, attributed to increased reliance on thermal power plants due to low water levels in the country’s hydroelectric dam and a wobbly.

The fuel cost charge rose to Sh8.3 per unit from Sh6.59 last month while the forex adjustment rose to Sh2.16 per unit from Sh1.85 in the period due to the weakening of the shilling against the dollar.

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