Kenya Power's bid to increase electricity tariffs has run into headwinds after draft regulations by the Energy and Petroleum Regulatory Authority (EPRA), if adopted, will compel the entity to improve service delivery.
Reports indicated that Kenya Power ought to show the basis of hiking tariffs by ensuring that the quality of their services is in line with the upward review of the charges- if approved.
The regulations affect Kenya Electricity Transmission Company (KETRACO), KenGen and other power producers.
“The determined tariffs must be accompanied by noticeable improvements in the quality of services provided by licensees."
"Approved tariffs will be linked to quality-related and efficiency key performance Indicators which will be monitored during the tariff period,” part of the regulations from EPRA read.
Under the proposed regulations, the power entity is also set to face penalties for not adhering to the stipulated guidelines.
Kenya Power, on the other hand, explained that the financial crisis within the company has crippled crucial service deliveries within the entity.
It also pointed out that one of its key strategies to increase revenue is through the increase of tariffs- which is set to take effect on April 1, 2023, if approved by EPRA.
“In order to achieve this broad mandate, there is a need for an electricity retail tariff that is just and reasonable to allow KPLC to maintain its financial integrity, attract capital, operate efficiently and compensate investors for risks assumed,” the power entity stated.
Kenya Power has in the past been under fire for the provision of poor quality services, slow pace of connecting new customers to the grid and repairing faulty equipment.
According to the entity, the proposed tariffs would double the electricity charges for users consuming over 30 units monthly- hence they would remit Ksh21.68 Kilowatt per hour(kWh) as opposed to the current Ksh10kWh.
In addition, users who consume under 30 units would pay Ksh14 kWh.
