Kenya Power has denied media reports that it has been inflating electricity bills by up to 20 per cent, stating that the firm operates in a regulated environment.
In a statement on Tuesday, the power distributor termed the reports as "not only nonfactual but also geared towards building a false narrative around the cost of electricity and tarnishing the brand".
Media reports on Monday cited Auditor General Nancy Gathungu's report alleging the company overcharges consumers for the electricity they do not consume, claims the utility has denied.
"Kenya Power operates in a regulated environment that is guided by the Energy Act of 2019. All charges as contained in the electricity bills are approved by the regulator (the Energy and Petroleum Regulatory Authority - EPRA) for all categories of customers," Kenya Power stated in a statement.
The company has explained that all bills are computed based on customer consumption which is the difference between the current meter reading and the previous reading (as taken during the previous month), in addition to tariffs, levies, and taxes.
The reports alleged that part of what inflates electricity bills is the miscalculation of system losses which are normally passed to consumers.
"Part of power system losses are inevitable during transmission and distribution of power; therefore, the regulator sets a threshold for the allowable system losses that is factored in the tariff. Kenya Power meets the cost of system losses incurred above what is allowed," Kenya Power stated.
In the 2023/2024 financial year EPRA has allowed system losses up to a maximum of 18.5 per cent.
Kenya Power further stated that the EPRA checks and verifies that the company charges its customers based on the rates approved by the regulator.
Further, the utility has dismissed claims that missing or faulty meters which lead to consumers getting bills that do not match their consumption.
Also, the audit also revealed that out of 96 generation plants supplying power to Kenya Power, only 38 had check meters and all 38 were off-the-grid power stations.
"Kenya Power buys electricity through one hundred (100) delivery points from fifty-eight (58) power suppliers that include KenGen, IPPs, REREC, and imports and all these delivery points have been verified to have both main and backup meters (check meters) as required in the respective Power Purchase Agreements," Kenya Power noted.
