No reprieve on power bills

• KPLC admit fuel cost adjustment and other levies in power bills cost more than the actual power consumed.
• Clear message: Pay now or be disconnected.

• Managing Director assures consumers current increase is only temporary.

Kenya Power and Lighting Company admit that fuel cost adjustment and other levies in power bills cost more than the actual power consumed.

KPLC Managing Director Joseph Njoroge said while the cost of consumption has increased by an average of 25 per cent, fuel levy, rural electrification programme, Energy Regulatory Commission (ERC) levy, Forex Adjustment and VAT are still making up the bulk of consumers bills.

“All these are only collected by KPLC on behalf of the government and other corporate entities charged with various roles in the electricity sub-sector. Together with Fuel Cost Charge, they constitute about 55 per cent of the total amount billed to customers.”

Despite attempts by journalists to get an overall percentage power bill increase, Mr Njoroge insisted that he could not give an average figure, preferring to view the increments separately.

The MD said despite the public’s outcry, KPLC will not give any grace period for consumers to pay their bills, some of which have tripled since last month.

His message is clear: Pay now or be disconnected.

“I would (give a grace period) if it were possible. But the business doesn’t allow it. I have to pay for electricity and it is also necessary that we pay for the generators so that they continue to be sustainable. We also have to remit the tax we collect for the various state agencies on time,” said Mr Njoroge.

Although consumers were expecting about a 24 per cent increment in their bills following the new rates announced by the Energy Regulation Commission mid last month, the actual bills had well over 100 per cent increment.

Mr Njoroge blamed an increase in the fuel cost surcharge as the main reason for the price increase.

According to copies of bill seen by the Nation, fuel adjustment cost has been increased from Sh 3.59 charged between May and June to the current Sh 6.49 representing an 80 per cent increase within a one month period.

He also said thermal power generation has since increased from 27 to 33 per cent, because hydo-power production has decreased from 58 per cent in December 2007 to about 47 per cent now.

Mr Njoroge said the increment is a result of the upsurge on oil price in the world market but he failed to give a detailed explanation of what else has led to the increase.

The Managing Director assured consumers that current increase is only temporary.

“Once the hydro conditions improve and there is adequate water in the dams, hydro electricity will be increased and customers will experience some relief in their bills as a consequence of reduced thermal generation.”

However, Mr Njoroge was quick to point out that if the price of oil in the global market continues to escalate, then power producers may be forced to dig even deeper into consumers’ pockets.