Kenya Power has issued a notice to electricity bill defaulters, given that arrears from its post-paid customers continue to rise.
The utility company published the notice the local dailies on Thursday, saying that it will disconnect electricity connections to customers with outstanding arrears.
Kenya Power is focused on collecting outstanding revenues from electricity sales.
The notice read in part, “Customers who will not have paid their outstanding bills by the date when the bill is due will have their supply of electricity disconnected immediately. The customer will thereafter be required to pay the requisite re-connection fees for their accounts to be reinstated.”
The firm's annual report covering the year to June 2019 shows that expected flows from outstanding electricity arrears stood at Ksh.23.6 billion which is an increase from Ksh.22.2 billion in June 2018.
Kenya Power elected to impair Ksh.12.3 billion from Ksh.9.7 billion from the pool of receivables, showing great risks and concerns for the non-recovery of bills.
Bills that have gone unpaid for more than three months form the bulk of arrears which stand at Ksh.11.4 billion.
The company enforces payment by way of disconnection if within 21 days of billing the bills remain unsettled.
However, negotiations on mutually acceptable payment arrangements are part of the procedures on remedial action to disconnection that company follows.
As customers fall in different regions across the country and diverse consumption categories, Kenya Power views the concentration risks of the receivables as low even though un-remitted bills continue to rise.
According to the utility firm, installing pre-paid and automatic meters are pragmatic strategies for minimizing the risk of non-collection.
Furthermore, it uses debt collectors to cover itself from bill defaulters, deploys disconnections, and requests for higher security deposits.
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