- The recovery of the amount approved by Epra can increase the power bills for more than 9.2 million customers.
- The former Kenyan President offered a one-year tariff cut from January to December last year, with Kenya Power getting compensation from the government.
The Energy and Petroleum Regulatory Authority (Epra) has permitted Kenya Power to recover the Sh6.5 billion revenue from consumers. Kenya Power lost this revenue when President William Ruto’s government offered a 15 per cent three-month temporary tariff cut extension months after ascending to office. Kenya Power disclosed in the latest annual report that it had received clearance to get back the money it missed.
The recovery of the amount, foregone for three months, has the potential of increasing the power bills for its more than 9.2 million customers in an environment where prices have been rising due to higher fuel costs, currency depreciation and the review of electricity tariffs. Retired President Uhuru Kenyatta offered Kenyans a one-year 15 per cent tariff cut from January to December last year, with Kenya Power getting compensation from the government.
The Ruto administration extended the tariff cut by another three months until April 1 this year. Still, it did not provide any compensation mechanism for Kenya Power for the cut—a loophole that has returned to haunt consumers. The report stated, “Unlike the preceding 12 months period of reduction for which interventions to cover the deficit had been provided, there was no intervention for the extended period. This amount has now been confirmed by Epra and is scheduled to be recovered through pass-through mechanisms.”