POWER COSTS

KPLC at fault for imposing 'WARMA levy' on electricity bills - Regulator

WRMA says only consumers who benefit from supply of electricity generated through use of water resources should pay.

In Summary
  • Agency’s CEO Mohamed Shurie said not all power is generated through water resources.
  • He was appearing before the National Assembly’s Committee on Energy.
A customer in Loresho, Nairobi, keys in tokens in her meter box on April 25, 2018.
A customer in Loresho, Nairobi, keys in tokens in her meter box on April 25, 2018.
Image: /FILE

Water Resources Management Authority (WARMA) has distanced itself from any involvement on the increasing cost of electricity in the country.

The agency explained Friday that it does not levy any charges or fees for electricity generation, transmission and distribution.

Instead, it says it only charges for the use of water resources as an input in the process of hydropower generation which “should be considered just like any other raw material which must be paid for”.

“The user pays, polluter pays principle ensures that it is only those who benefit from the use of water resources who pay for its management and this cut across all sectors of the economy,” Agency’s CEO Mohamed Shurie told the National Assembly’s Committee on Energy.

In his presentation, Shurie disclosed that these fees are wholly utilised for the regulation of the use and management of water resources.

“This ensures that as a regulator we have the necessary financial resources for regulating the water resources uses and the realisation of the Constitutional obligation imposed on the State to provide clean and safe water in adequate quantities,” said Shurie.

The Committee chaired by Narok East MP Ken Kiloku is inquiring into the skyrocketing cost of electricity in the country.

On the WRMA levy, the official shifted blame at the Kenya Power and Lighting Company (KPLC) for charging all its consumers yet not all power is generated through hydropower.

He observed that even though all consumers of electricity in Kenya currently pay for the ‘levy’ in their electricity bills, not all electricity is generated from the use of water.

“It is therefore necessary that only consumers who benefit from supply of electricity generated through use of water resources should be required to pay this charge if it cannot be incorporated as an input by the power producers,” he added.

The Committee has also summoned Treasury Cabinet Secretary Njuguna Ndung’u, Attorney General Justin Muturi and CEOs from various agencies in the energy sector for a day-long meet to deliberate on the matter.

The move by KPLC to procure a larger quantity of power from Independent Power Producers (IPPs) as compared to purchasing directly from KenGen is attributed to the rise in cost of power.

As part of its mandates, the WRMA pointed out that it is mandated to ensure fair play, equity and justice for all the players as they carry on with their business.

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