In a span of five years from February 2018 to February 2023, Kenya Power, the national electricity distributor, has been accused of inflating electricity prices by Sh70.35 billion. This inflation in prices is attributed to the Energy and Petroleum Regulatory Authority (EPRA) adding illegal charges to consumers’ monthly fuel surcharge.
During this period, consumers were burdened with exaggerated power bills, resulting in the payment of an extra Sh70.35 billion. These additional charges were imposed by EPRA on their monthly fuel surcharge.
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The issue of inflated electricity prices in Kenya has raised concerns among the public. Here are some key details regarding this matter:
Overcharged Amount: Consumers have been found to have paid an extra Sh70.35 billion in exaggerated power bills over the five-year period leading up to February 2023. EPRA’s inclusion of illegal charges in the monthly fuel surcharge contributed to this overcharging.
Calculation Errors: An analysis conducted by the Nation and the Electricity Consumers Society of Kenya (ELCOS Kenya), along with a report from the Auditor-General, revealed calculation errors that resulted in consumers being overcharged by as much as Sh4.4 per unit monthly from January 2018 onwards. EPRA disregarded the formula set by the energy regulator, leading to the inflated bills.
Overcharging by Kenya Power: The Auditor-General’s report further highlighted that Kenya Power had overcharged consumers by Sh23.17 billion in the year up to June 2023. EPRA had inserted charges outside the formula while calculating the fuel energy charge (FEC), allowing Kenya Power to collect the additional charges.
Impact on Consumers: The overcharging and inflated electricity prices have had a significant impact on consumers, exacerbating the cost of living crisis in Kenya. The high power prices have contributed to a rise in inflation, with prices increasing by as much as 17.5 percent.
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These revelations of Kenya Power’s inflation of electricity prices and the subsequent burden on consumers highlight the need for transparency and accountability in the energy sector. It is crucial for regulatory bodies like EPRA to adhere to established formulas and prevent illegal charges from being imposed on consumers. Efforts should be made to rectify the overcharging and ensure fair and affordable electricity prices for all Kenyan citizens.
