Epra director-general Daniel Kiptoo told the
Business Daily that he will be in a position to “discuss” why the regulator had not implemented the reduced tariffs in December once he returns from Christmas break today (January 3).
A source at Epra said gazetting reduced tariffs was
“a process still in pipeline”, pointing to difficulties in implementing the presidential pledge of a drop in tariffs upon the advice from a task force Mr Kenyatta appointed to help lower power costs.
The rise in cost of electricity bills is largely due to variable costs such as
16 percent value added tax,
fuel cost charge that reflects compensation for expensive diesel plants, foreign exchange charge and five percent REP levy for rural electrification.
President Uhuru Kenyatta had promised in August to cut consumer electricity tariffs by 33 percent ahead of Christmas in a plan that hinged on a review of power purchase agreements (PPAs) signed over the years.
But the IPPs opposed the reduction,
arguing that Kenya has no unilateral right to alter the contracted capacity and payments, saying instead that the State has a duty to protect PPAs inked over a period of 20 years.
Kenyan households and businesses did not experience a 15 percent drop in electricity bills by Christmas as promised by President Uhuru Kenyatta.
www.businessdailyafrica.com
I thought before signing any contract, there must be obligations from either side and also exit clauses, and also arbitration process also that favours both sides, lawyers from both sides together with procurement team usually goes through every line of terms and conditions . Hi ya Kenya power nikama it was rushed through deliberately, after all ni pesa ya raia, nobody cares
But if government was serious to reduce it can happen, things like VAT,REP levy can be reduced via legislation, they keep shouting they've the numbers but no one has the balls to use those numbers to sort raia.
