The National Assembly Departmental Committee on Energy has raised concerns over punitive Power Purchase Agreements signed between Kenya Power Company (KPC) and Independent Power Producers (IPP).
The committee chaired by Mwala MP Vincent Musyoka, during a meeting with the KPC and IPPs, said Kenyans cannot continue paying expensive power when affordable power is available.
“We can’t get into other take or pay agreements. This committee will not allow the purchase of expensive power from some IPPs when we have affordable power,” said Musyoka.
In response to the Committee’s concerns, one of the IPPs – Kopere Limited – chaired by James Kimonye affirmed its willingness to engage in renegotiations on condition that contractual periods are extended.
Kimonye told the members that despite his company having offered to supply power to KPC at Sh10 per KWH, he is yet to be licensed when other companies offering a higher rate of Sh13 are licensed and are in operation.
The IPPs who attended the meeting include Selenkei Investment Limited, Kopere Solar Park Limited, Chania Green Limited and REgen – Terem SHPP Limited.
The Committee has been engaging representatives of employers and workers, the academia and industry experts as well as the Inter-Religious Council of Kenya on solutions to the high cost of electricity in the country.
Earlier, religious leaders, trade unionists and workers unions had called for the revocation of purchase agreements signed between Kenya Power and the IPPs to reduce the high cost of electricity.
The Central Organisation of Trade Unions, the Law Society of Kenya, Kenya Medical Association, Union of Kenya Civil Servants and the Kenya Union of Post Primary Education said the current purchasing agreements were punitive to Kenyans.
They said that by revoking the current agreements signed between KPLC and the IPPs, the committee will be cushioning many families and businesses from the runway cost of power.
