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Monday, August 7, 2023 –Consumers of electricity in the country have, for long, been overcharged for what they have never been consuming. Shocking audit report has confirmed.
Latest auditor General’s report established that clients at Kenya Power and Lighting Company KPLC are always charged 20 percent extra for what they have not used, every month.
A forensic review of generation, transmission and distribution of power found out that bills do not match actual consumer usage while, at the same time, extra charges loaded on the consumers by the utility company cannot be traced in the actual billing system.
“Almost 20 percent of the bill to consumers cannot be matched to actual consumption neither can the distribution company attribute it to a specific consumer,” Auditor General Nancy Gathungu said as quoted by Business Daily.
The audit report further indicated that not the Energy Regulatory Authority EPRA or Kenya Power management can explain persuasively how these charges happen and for what reason.
Business Daily reported on Monday August 7 that this thorough audit found that there was a miscalculation of system losses which is attributed to the use of outdated study reports, partial simulations and arithmetical errors.
Ms Gathungu, who was represented by her deputy Stanley Mwangi, told the National Assembly Committee on Energy probing the high cost of electricity in the country that, her office discovered cases of check meters lacking, faulty check meters and discrepancies between the check meters and the main meters leading to consumers being given wrong bills.
According to the auditor, out of 96 generation plants supplying power to Kenya Power, only 38 had check meters. More shocking is that all 38 meters were off-the-grid power stations.
Ms Gathungu also told MPs that Kenya Power had no capacity to counter-check the invoices presented by the independent power producers (IPPs).
“There was a lack of primary access to the key indices which limited the ability of IPPs and KPLC to independently verify the authenticity of prices in the invoices where such indices were applied,” Ms Gathungu said.
“The risk from lack of access to these key indices means KPLC is limited in its oversight role of ensuring the submitted invoices were correct.”
The audit identified system losses by Kenya Power KPLC as adding the greatest cost burden to final consumers.
The AG pointed out that, in the past three financial years, there has been a high percentage of system losses compared to that which is approved by both EPRA and Kenya Power.
For instance, in the financial year 2019/2020, the approved efficiency loss was 19 percent but Kenya Power recorded 23.47 percent efficiency loss.
In 2020/2021, the approved system loss was 19 percent but the recorded loss was 23.98 percent. In 2021/2022, the system loss was 22.44 percent against the approved efficiency loss of 19 percent.
For each loss that surpasses the approved loss of 19 percent, the extra cost is passed to consumers in their power bills.
President William Ruto who was talking on Inooro Tv from Sagana State Lodge on Sunday August 7, said his administration was now working to clear messes at the Kenya’s only utility firm.
