The National Assembly Departmental Committee on Energy chaired  by Hon. (Eng). Hon. Vincent Musau (Mwala) continued with a series of meetings with stakeholders with the aim of reviewing the Power Purchase Agreements in order to give Kenyans a reprieve on the high cost of electricity.

The Committee met with representatives from Orpower 4 Inc, Kipeto Energy Limited, Kenya Association of Manufacturers (KAM), Kenya Private Sector Alliance (KEPSA) and Institute of Engineers of Kenya (IEK).

The stakeholders were asked by Member to  highlight the terms of the existing contractual engagement between Kenya Power Company (KPC) and Independent Power Producers (IPPs,  the details of registered owners, shareholders & directors and the variance between the rates charged by IPPs and KENGEN including details of unit charge.

During their submissions, the stakeholders proposed measures that can help lower the cost of power in Kenya. They pointed out the need to have a 24-hour economy, need to strengthen the grid & eliminate power transmission bottlenecks, explore ways to reduce cost of fuel for thermal plants, a re-look on taxes and levies on electricity Bill, need to address operational efficiency across generation, transmission and distribution lines,  and the extension of Power Purchase Agreements among others.

The IPPS told the Committee that they were willing to lower their charges should the Government consider giving incentives to IPPs or concessional loans and also explore ways of the GOK taking over existing IPP debts as they are currently servicing Foreign loans and experiencing a delay in payments by KPC.

According to Members the greatest challenge to lowering the cost of electricity  is the service charge which is levied by most IPPs.