President Uhuru Kenyatta has appointed a task force to review power purchase agreements between Kenya Power and power producers.
This follows allegations that the increase in electricity costs was the result of purchases Kenya Power made from private companies at an inflated cost.
The Department of Energy had also set up a team that would review all existing power purchase agreements (PPAs) signed with independent power producers explaining the details of how much the generators are paid. by Kenya Power for the electricity sold to them.
Energy CS Charles Keter (third from right) and other dignitaries at the Suswa high voltage DC converter substation.
Garissa Town MP Aden Duale reported to the National Assembly that private generators were selling electricity to Kenya Power at Ksh 23 per kilowatt hour, while KenGen offered the same at Ksh0.50.
“In this irregular arrangement, PPIs normally buy electricity from KenGen at Ksh 0.50 per kilowatt hour before discharging it to Kenya Power at an inflated rate of Ksh 23 per kilowatt hour,” said Duale.
He added that Kenya Power had not maintained its goal of providing the Kenyan economy with affordable electricity but had instead “presided over a massively inflated power supply regime that is having retrograde effects on already overburdened taxpayers and businesses. “.
Energy Cabinet Secretary Charles Keter formed the PPAs Standing Review and Renegotiation Committee, urging them to renegotiate with power producers and review any footprints that may have put the government at a disadvantage during its shutdown. engagement with private sector actors.
“The committee will develop an appropriate strategy to engage power producers in renegotiations for sustainable solutions for the energy sector and economy – and review production projects initiated for the transition to auction. energy, ”Keter explained.
However, he dismantled the 13-member committee soon after, saying the ministry needed to involve key stakeholders in reducing energy costs in the country and universal access to electricity.
“For general public information, it is notified that the Energy Board has revoked the appointment of the PPA’s Standing Review and Renegotiation Committee which had been appointed (by notice in the Official Journal on) March 12, 2021.
“We are seeking to involve the Treasury, the Attorney General’s office and senior officials in the sector. The task force will be in place for three to six months and is expected to come up with recommendations that will cushion the energy sector, ”Keter said in a public notice.
Kenya Power engineers perform repairs at a power substation in Mombasa County in 2018