Kenya Power has received Sh673 million from State-owned energy firms as compensation for lost revenue from last year’s electricity tariff discount, helping lower the negative impact of the subsidy on its books.
The utility’s chief financial officer Stephen Vikiru said that Kenya Electricity Transmission Company (Ketraco) and Geothermal Development Company Limited (GDC) have paid Sh500 million and Sh173 million respectively.
Kenya Power, Ketraco, GDC and KenGen were to forgo a combined Sh12.14 billion to provide room for the 15 percent cut on electricity prices from January to December last year.
The electricity distributor gave up annual revenue of Sh7.8 billion, KenGen (Sh3.5 billion), Ketraco (500 million) and Geothermal Development Corporation (GDC) Sh346 million.
The other firms were supposed to remit their share of the foregone funds to Kenya Power to compensate it for the discount given that it is the sole distributor and revenue collector from power customers and, therefore, took the full hit on its books.
KenGen is yet to pay any of the Sh3.5 billion that it committed and is expected to issue a credit note to the State-owned electricity distributor.
“Ketraco has fully honoured its commitment of Sh500 million while GDC committed Sh346 million but has so far paid 50 percent of this amount. KenGen is yet to pay but has indicated it will issue credit notes this month,” Mr Vikiru told Business Daily on Friday.
A credit note is a document issued to a customer to correct a mistake on an order or an invoice, or to refund an amount paid for products or services.
The power distributor owed KenGen Sh22.9 billion for electricity supplied in the financial year ended and the Sh3.5 billion is set to be offset from the debt.
Kenya Power revealed it took a Sh2.1 billion hit in the first six months of the subsidy after the three firms failed to honour their commitments in time.
