If you thought that the power bill in your household is ridiculously higher than it should, then you are in for more surprises as the power bills are poised to be significantly increased to cover for Kenya Power Ltd corruption, conspiracy and outright fleecing of taxpayers.
This comes after Energy and Petroleum Regulatory Authority -ERPA reviewed the electricity tariffs on August 15th 2020 to increase the margin of system incurred losses thus giving the power distributor a leeway to further hikes its charges to consumers in a bid to recover millions lost in tender malpractice and corrupt officials tender conspiracies’ and malpractices.
The power distributor will effectively recover 19.9 percent of system losses from consumers a drastic increase from previous 14.9 percent ERPA reviewed in 2018. Just to put it on perspective, system losses is a difference between what Kenya power Ltd buys electricity from power producers and what it sells to consumers.
‘Epra has made changes to Gazette No. 8043 of 2018 in respect of schedule of tariffs, charges, prices, rates to be charged by Kenya Power Ltd to consumers of electrical energy.’ Erpa statement reads. Its further states ‘target systems loss factor in transmission and distribution is amended from 14.9 percent to 19.9 percent’
Kenya Power Ltd in recent past stated that whooping 11 percent of power system losses are commercial which points to theft among officials and customers.
In a recent show blatant impunity and failure in following rule of law, Kenya Power Ltd single sourced a contractor to carry out the colossus of sh.15 billion rural electrification program against well laid down procurement guidelines premised in laws of Kenya despite a warning from the national treasury that it won’t guarantee it in an event of default.
The decision by the power distributor to go ahead while disregarding key voices like that of treasury shows contempt they have on due process, accountability and therefore exposes Kenyans the massive losses they are forced to shoulder. The court recently termed the decision to single source ‘perennial issue bedevilling state agencies’ in direct contrast with the Kenya Railways corporation controversial Standard Gauge Railway – SGR tender single sourcing.
Similar to Kenya Railways defence, Kenya Power Ltd cited bilateral agreements ensure that a contract won’t be subjected to procurement laws which automatically puts taxpayer’s money at risk of losses as there is no framework to guard and guide the process. The power utility also stated no local entity had financial muscle and wherewithal to deliver on that project.
Despite the Kenyan treasury okaying the loan from French Bank, it further said in a letter dated June 25th 2015 that it didn’t they could guarantee
High Court justice Mativo, has since faulted Kenya Power Ltd for breach of procurements laws.