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SENATE COMMITTEE ON ENERGY PUSH FOR REDUCTION OF ENERGY COST

SENATE COMMITTEE ON ENERGY PUSH FOR REDUCTION OF ENERGY COST

Senate Standing Committee on Energy Chaired by Nyeri Sen. Wahome Wamatinga held a meeting today with the Electricity Consumers Society on the high cost of electricity. 

The Committee has renewed efforts to review costly power supply contracts entered between Kenya Power and Independent Power Producers (IPPs). 

Marsabit Senator, Mohammed Chute is proposing to probe the contracts signed between Kenya Power and independent power producers (IPPs) which according to the legislator disadvantage the end consumer.

The Senator said he was concerned that independent power generating companies supply electricity at 28 per cent to Kenya Power but account for 47 per cent of power purchase costs. 

He is thus proposing that the Standing Committee on Energy undertake an inquiry into contracts signed by IPPs detailing the cost, capacity and duration of the contractual agreements and their implications on affordability of electricity in the country.

Further, he wants the committee to have an inquiry into the discrepancy in the cost of electricity sold to Kenya Power by Ken Gen, imports from Ethiopia and IPPs.

The Committee recognized that there is an imbalance in the demand and supply of power, coupled with payments by KPLC for produced power not consumed and fluctuation in the foreign exchange rates, which have contributed to the high cost of electricity in the country.

While there has been a significant growth in the demand for electricity in Kenya driven by economic growth, increased efforts towards rural electrification, and reinforcement of the transmission and distribution grids.

However, the supply has been constrained majorly due to over-reliance on hydro-electric power generating plants that have been negatively impacted by perennial drought experienced in the country.

The high cost ends up being pushed down to the final consumer making electricity in the country expensive.

Members present were:

1. Sen. William Kisang'Kipkemoi- Elgeyo Marakwet

2. Sen. Edwin Sifuna- Nairobi 

3. Sen. Abbas Mohamud- Wajir

4. Sen. James Lomenen- Turkana

5. Sen. Oburu Odinga- Siaya

6. Sen. Dr Boni Khalwale,CBS

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