Kenya Power Inflated Consumer Electricity Bills By 20%, Auditor General Report

• The auditor general report to the National Assembly Committee on Energy showed Kenya Power exaggerated electricity bills to consumers
• Auditor General Nancy Gathungu said up to 20% of the electricity that was not consumed and billed is not reflected in KPLC's systems
• Consumer Federation of Kenya (COFEK) Secretary General Stephen Mutoro castigated the action, demanding for consumer refund

Kenyans using electricity supplied by Kenya Power and Lighting Company (KPLC) have been paying 20% more than they consume.

The auditor general report to the National Assembly Committee on Energy showed that KPLC inflated power bills do not match actual consumer consumption.

How KPLC increases consumer bills

Auditor General Nancy Gathungu revealed that charges loaded to the consumer cannot be traced to KPLC's billing systems.

“Almost 20% of the bill to consumers cannot be matched to actual consumption neither can the distribution company attribute it to a specific consumer,” said Gathungu, as quoted by Daily Nation.

Gathungu noted a miscalculation of system losses by the utility firm was caused by arithmetic errors, outdated reports, faulty check meters and discrepancies in existing check meters.

Out of 96 power generation plants, only 38 had check meters but connected off-the-grid.

The committee, led by MP Vincent Musyoka, heard that KPLC did not countercheck invoices from Independent Power Producers (IPPs), confirming the public fears of increased power charges.

“There was a lack of primary access to the key indices, which limited the ability of IPPs and KPLC to independently verify the authenticity of prices in the invoices where such indices were applied. The risk from lack of access to these key indices means KPLC is limited in its oversight role of ensuring the submitted invoices were correct,” Gathungu's report continued.

The report added that Kenya Power has been passing electricity transmission losses to consumers, a loss the committee said should only be shared by KPLC and IPPs.

Kenya Power refuted the claims saying power losses from the transmission are factored into 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," said KPLC in a statement.

Kenyans annoyed by high electricity bills

Consumer Federation of Kenya (COFEK) secretary general Stephen Mutoro said the report is a revelation of what Kenyans have been facing for years, condemning the utility firm's action.

"Kenya Power should make a commitment to refund consumers of their hard-earned money. We do not expect them to defend this course in the court of law," said Mutoro in response to TUKO.co.ke.

The majority of Kenyans took to social media to express their disappointments following the report, with some claiming privy information that awaited confirmation.

@iampeterNgash replied:

"We all knew this. We were looking for confirmation."

@MikenelloMike said:

"It has been happening for more than 6 years...very unfortunate that they still make losses... corrupt to the core..."

@alyhdi argued:

"It is time to consider forming or joining consumer advocacy groups to collectively address the issue and hold the company accountable. Where are the consumer protection agencies?"

@misswandia said:

"This happened to us. They put a fake reading for the bill that was more than the actual reading on the metre. The metre reading on the bill was even higher than what we read on the metre two weeks after KPLC allegedly read our metre."

Kenya Power managing director Joseph Siror attributed the change in bills to power losses during electricity transmission.

Ndindi Nyoro increases his KPLC shares

This came despite the report of increased shareholding values in the firm by various stakeholders.

The National Assembly's Budget and Appropriations Committee chairman Ndindi Nyoro increased his shares at the utility firm to 32.5 million representing a 1.67% stake.

Nyoro's overall stake is now valued at KSh 48.75 million, according to Business Daily.