Electricity consumers face Sh8.1 billion backdated bills as Kenya Power moves to recover costs incurred on diesel generators last year yet were not factored in monthly charges while the government sought to keep a lid on utilities in an election year.
Kenya Power has revealed the hefty bill in its annual financial statement, explaining which which arose coming from severe drought last year which necessitated a surge inside uptake of expensive diesel-generated electricity which compensated for a sharp dip in hydropower production.
The bill can be part of the Sh10.1 billion identified as unrecovered power fuel costs inside State-owned firm’s annual statement for the year ended June 2017.
About Sh2 billion has been recovered so far, leaving out Sh8.1 billion which will be passed on to consumers in monthly invoices.
Kenya Power was made to absorb the fuel costs inside months leading up to the August 8 elections, building up the arrears over the period.
“There were delayed fuel cost recoveries for the year ended June 2017 (partial fuel cost recovery) in support of the government’s goal of stabilising electricity costs,” Kenya Power responded to our queries, adding which the recovery of the funds has already started out.
“The drought experience inside period led to reduced output coming from hydropower in addition to also the consequent increase in dispatch of thermal power plants.”
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SOURCE: Business Daily
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Power consumers to pay Sh8.1bn backdated bills