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KPLC Acting Managing Director, Eng. Geoffrey Wasua Muli, has defended the increase in power tariffs saying that 60% of the cost of power is used to pay for capacity charge. The MD appeared before the Parliamentary Committee on energy yesterday sitting in Mombasa. In attendance was the energy PS, Mohammed Liban, who said that a weakening Shilling against the dollar will have a ripple effect on the cost of power.
KPLC now claims that a number of counties are adding to their wars as they now want to tax electricity polls that Kenya Power puts up in their regions.
“Out of Kshs 100 bn generated from Kenyans through paying power bills, 60% is used to pay capacity charge for private investors who provide power to the National Grid,” said Eng. Muli.
The legislatures now want Kenya Power to renegotiate the agreements made with the investors if the cost of power is to be sustainable.
The PS, Mr Muli, further claimed that the weakening shilling against the dollar is expected to affect the cost of power in the country.
Read: Proposed Kenya Power Tariffs To Hit Hustlers Harder
With the harsh economic times, Kenya Power and other stakeholders have asked the legislature to intervene to avoid attracting more operating expenses. Nairobi, Machako, and Mombasa are some of the companies that intend to charge KPLC’s post. This would translate to an overall increase in cost of distribution of power.
As a result, Eng. Vincent Musau, the Chair of the Parliamentary Energy Committee, challenged the company to look for alternatives for sustainable power cost.
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