Senate Committee On Energy Push For Reduction Of Energy Cost

Kenyan Senate Standing Committee on Energy held a meeting with the Electricity Consumers Society on the high cost of electricity.

During the meeting, the committee renewed efforts to review costly power supply contracts entered between Kenya Power and Independent Power Producers (IPPs).

Senator Mohammed Chute proposed the probe of 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 inquire into contracts signed by IPPs detailing the cost, capacity and duration of the contractual agreements and their implications on electricity affordability in the country.

Further, he wants the committee to investigate 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," stated the committee.

While there has been 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 hydroelectric power generating plants that have been negatively impacted by perennial drought experienced in the country.

The high cost is pushed down to the final consumer, making electricity in the country expensive.

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