The National Assembly has instructed the Kenya Power and Lighting Company (KPLC) to quickly implement a decision that stops them from signing any new Power Purchase Agreements (PPAs) following a motion sponsored by Laikipia County Woman Representative Jane Kagiri.
In a meeting with KPLC Managing Director, Dr. (Eng.) Joseph Siror, the Committee on Implementation stated that the power company should engage power producers to lower the cost of electricity.
The Committee noted that the cost of power in the country had continued to skyrocket and sought to know what KPLC was doing to reduce its over-reliance on Independent Power Providers (IPPs).
They however sought an update on the implementation status of the House resolutions on the matter.
In his response, Eng. Siror assured the Committee that no new power purchasing agreements had been pursued since the National Assembly slammed the brakes on the matter.
“I want to assure this Committee that KPLC has not entered into any new PPAs since the time this Honorable House issued a moratorium on the signing of PPA,” Eng. Siror said.
Siror also confirmed that the power firm was already addressing other factors affecting the cost of power through the PPAs renegotiation and implementation of the Least Cost Power Development Plan.
He noted that KPLC had already submitted the necessary information to the Departmental Committee on Energy.
Tapping on Renewable Energy
The Committee Chaired by Budalangi MP Raphael Wanjala further questioned why Kenya Power was not tapping into renewable energy and other cheaper sources that would, in the long run, see the utility company reduce its over reliance on IPPs
“There are so many rivers that drain into Lake Victoria. Why can’t Kenya tap into such renewable sources?” Wanjala posed.
Nandi County Woman Representative Cynthia Muge also inquired on details on the rates at which Kenya Power was purchasing power from IPPs as compared to KENGEN and other cheaper producers.
According to the records tabled before the Committee, Kenya Power purchased 36% of the total dispatched energy from Independent Power Producers (IPPs) with the rest purchased from KENGEN and REREC.
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Kenya Power Tariffs
Other Committee members inquired on tariffs charged on various consumers and the plans Kenya Power had put in place to make their services affordable.
Responding to the question on power tariffs, the Managing Director told the Committee that Kenya Power charges are determined by the category explained that while the company is responsible for the generation of power bills, attendant charges including tariffs that aggregate to the bill posted to consumers, are determined by external factors that are beyond the control of KPLC.
Additionally, Siror revealed that KPLC had plans to introduce an Energy Auction model where interested IPPs would be notified on the energy needs on a regular basis for them to place bids, which they noted would bring the cost of power down.
The Chairperson directed that Eng. Siror appears before the Committee on September 3, 2024, to provide further responses.
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Role of the Committee
The Committee is expected to come up with measures to reduce the cost of power and submit a report to the House within one hundred and twenty (120) days.
The Resolution in part called on the Departmental Committee on Energy to undertake an inquiry into the operations of Kenya Power in relation to agreements entered into with IPPs and factors affecting the cost of electricity.
On their part, Kenya Power and the Ministry of Energy were to develop suitable strategies for engagement with IPPs in order to provide relief for electricity consumers and ensure the long-term viability and sustainability of the energy sector.
In the latest review, the Energy Petroleum and Regulatory Authority (EPRA) reviewed the prices of electricity upwards with customers now expected to pay 1.5% higher. This marked the third month of 2024 where EPRA has raised the prices of electricity to further compound the already high cost of living among some Kenyans.
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