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Power consumers to pay Sh8.1bn backdated bills


A Kenya power technician fixes high voltage electricity line along Kenyatta Avenue. PHOTO | FILE

Electricity consumers face Sh8.1 billion backdated bills as Kenya Power moves to recover costs incurred on diesel generators last year but were not factored in monthly charges while the government sought to keep a lid on utilities in an election year.

Kenya Power has revealed the hefty bill in its annual financial statement, explaining that it arose from severe drought last year which necessitated a surge in the uptake of expensive diesel-generated electricity that compensated for a sharp dip in hydropower production.

The bill is part of the Sh10.1 billion identified as unrecovered power fuel costs in the State-owned firm’s annual statement for the year ended June 2017.

MONTHLY INVOICES

About Sh2 billion has been recovered so far, leaving out Sh8.1 billion that will be passed on to consumers in monthly invoices.

Kenya Power was made to absorb the fuel costs in the months leading up to the August 8 elections, building up the arrears over the period.

“There were delayed fuel cost recoveries for the year ended June 2017 (partial fuel cost recovery) in support of the government’s goal of stabilising electricity costs,” Kenya Power responded to our queries, adding that the recovery of the funds has already started.

“The drought experience in the period led to reduced output from hydropower and the consequent increase in dispatch of thermal power plants.”

Read the full story here.

SOURCE: Business Daily

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