The National Assembly Departmental Committee on Energy chaired by Hon.(Eng) Vincent Musyoka met the Cabinet Secretary for Energy and Petroleum Mr. Davis Chirchir , the Principal Secretary State Department of Energy Mr. Alex Wachira, the Managing Director of the Geothermal Development Company (GDC)  amongst other officials to address the reduction of the high cost of electricity in the country.

“The objective of this meeting is to tackle the escalating cost of electricity in the country, which has rendered our economy non-responsive and non-competitive. This follows a resolution by the House that this matter be inquired into and a report presented to the House within 120 days,” said Hon. (Eng) Musyoka.

The concerns raised by the Committee included; the discrepancies in costing of electricity units, the upward review of tariffs by the Electricity Pricing Regulatory Authority (EPRA), the Power Purchase Agreements (PPA’s) between the Independent Power Producers (IPPs) and Kenya Power Company (KPC) for the last five years and the next five years with their respective shareholding on the CR12, how the foreign exchange rate fluctuation adjustment is computed, the comparison of monthly economic merit order of energy projection and actual dispatch.

While addressing the Committee’s concerns, CS Chirchir said the Government has renegotiated the Government to Government (G to G) oil deal to remove the confirmation charges slapped on the letters of credit secured from the banks as well as the premium freight expenses for the oil cargo docking in the country. 

In addition, he reiterated that the terms of the deal favour Kenyans and that it has already brought down the premium charges and is expected to ease the pressure on the Kenya Shilling against the United States Dollar. 

After a review of the documents presented, the Committee recommended that the Ministry provide an annex with additional information on the power purchased, shareholding ownership of EOS Holdings Group Limited, the minutes and approved report for public participation meetings that informed an upward review of tariffs and an explanation as to why it was not  involved on the same.

To conclusively deal with this matter and come up with a lasting solution that will benefit Kenyans, the Committee is scheduled to hold meetings with several other players in the sector.