Electricity producers (IPPs) eyeing to end Kenya power monopoly
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Electricity producers (IPPs) seek to end Kenya power monopoly as they eye selling electricity directly to consumers
Electricity producers (IPPs) seek to end Kenya power monopoly as they eye selling electricity directly to consumers.
Independent power producers (IPPs) have petitioned Parliament for permission to break Kenya Power’s monopoly and provide electricity directly to consumers.
The IPPs have also asked for a review of Kenya Power’s operational efficiencies to ensure a reduction in power theft.
The Electricity Sector Association of Kenya (ESAK) urged legislators to undertake reforms that will promote more competition in the power-producing industry’s support services, transmission networks, and generation facilities.
In order to prevent power rationing in the country within the next three years, they want Kenya Power’s monopoly to be opened to competition.
“We propose that you open the Kenya Power market to competition from local independent power producers. This House passed the Energy Act, 2019 which provides for competition,” George Aluru, the ESAK chairperson, told the Senate Committee on Energy.
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“There are 29 regulations lying at the Energy and Petroleum Regulatory Authority (Epra) that need to be passed by Parliament to open up the power generation market and competition in power transmission.”
The association appeared before the committee which is conducting a public inquiry into the high cost of electricity.
The committee has so far grilled 11 independent power producers, including KenGen, over the skyrocketing cost of electricity.
The committee chaired by Wahome Wamatinga is seeking to establish why the IPPs are selling electricity to Kenya Power at inflated prices hence the high-power prices.
Kenya Power’s power purchase agreements remain controversial amid concern the firm has signed contracts committing it to take more electricity than it can sell.
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