The National Assembly Departmental Committee on Energy Vice Chairperson Lemanken Aramat (left) makes his remarks during the roundtable discussion in regards to reducing the cost of electricity in the country held at Hilton Garden Inn on August 4, 2023. With him is Chairperson Vincent Musyoka Musau. PHOTO | FRANCIS NDERITU | NMG
Kenya Power is facing yet another inquiry amid revelations that the utility has been inflating customer bills, making access to electricity a painful affair for homes and increasing costs for businesses.
The inquiries on tariffs, staff lifestyles and deals with independent power producers have come amid increased public outcry and backlash, mainly on social media.
However, past inquiries have not borne the desired outcomes, raising fears that the latest investigation might be another wild goose chase.
Public outcry amid the perennial inquiries into Kenya Power has also led to increased calls to allow more private sector players into the power distribution sector as part of ending the utility’s monopoly.
Inflation of bills
This is the latest inquiry and comes following revelations by Auditor-General Nancy Gathungu that nearly 20 percent of the customer bills could not be matched to actual consumption or specific customers.
Prime Cabinet Secretary Musalia Mudavadi ordered the inquiry last month even as the utility failed to sufficiently explain the discrepancies.
The Auditor-General’s findings further revealed cases of missing or faulty check meters and discrepancies between the check meters and the main meters, leading to consumers being given bills that are not reflected in their meters.
The Inspectorate of State Corporations is leading the investigations but it remains to be seen whether the findings will lead to relief for customers at a time electricity retail tariffs were reviewed upwards.
Power purchase agreements
A presidential task force chaired by boardroom veteran John Ngumi recommended the review of power purchase agreements (PPAs) between Kenya Power and independent power producers (IPPs) two years ago.
A review of the PPAs was said to be key to lowering wholesale electricity prices, which would in turn allow Kenya Power to cut customer bills by 15 percent.
But the recommendation flew into headwinds with IPPs rejecting the proposal. Only three small IPPs whose total power supply to the national grid is less than one megawatt agreed to reduce their tariffs.
The IPPs supply some 3,000 megawatts to Kenya Power, highlighting yet another failed attempt to carry out an inquiry into Kenya Power operations.
Lifestyle audit of staff
The inquiry was another key recommendation made by the Mr Ngumi-led task force appointed three years ago by former President Uhuru Kenyatta.
The lifestyle audit started in October 2021 and was spearheaded by the Ethics and Anti-Corruption Commission.
The first phase began with the senior staff and came hot in the wake of Kenya Power’s net loss of Sh2.98 billion in the financial year ended June 2020 — which was the first loss in 17 years.
However, the investigations into the irregular amassing of wealth by the utility’s staff came to nought with the findings going mum.
It also remains unclear if the audit was extended to the rest of the firm’s more than 1,000 employees.
Breakdown of client bills
The Energy and Petroleum Regulatory Authority (Epra) disclosed that it had opened investigations to unearth reasons behind the move by Kenya Power to stop giving customers a breakdown of their electricity bills. From November 2020.
The then Epra Director-General, Mr Pavel Oimeke, disclosed the start of the inquiry after customers stopped getting details on payment of value-added tax, Epra levy, inflation adjustment, water regulator fees as well as foreign exchange and fuel adjustment surcharges in their electricity bills.
However, Kenya Power made a U-turn and resumed the billing breakdown amid an inquiry from the energy regulator and Parliament.
However, in April, Kenya Power stopped giving the billing breakdown amid costly electricity, once again attracting public outcry and the spotlight.
The utility defended the decision on the grounds that it is saving an estimated Sh80 million every month after it stopped giving the breakdown of customer bills.
Kenya Power has not resumed the breakdown even after the energy regulator vowed to quash the decision and Parliament turned focus on the utility amid mounting public outcry.
