Senate initiates investigations over high electricity prices
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Senate initiates investigations on independent power contractors over high electricity prices in a bid to lower charges
Senate initiates investigations on independent power contractors over high electricity prices in a bid to lower charges.
Through Order Paper No 006, the Senate resolved that Standing Committee on Energy undertake an inquiry into contracts signed by Independent Power Producers (IPPs).
The process is aimed at cushioning Kenyans from high electricity prices amid harsh economic times.
The establishment of inquiry was formed after the revelation that IPPs were producing less electricity to the national grid while charging exorbitantly for the same.
“Private power generating companies only supply 28 percent of power to Kenya Power but account for 47 percent of power purchase costs,” the Order Paper stated.
Due to this discrepancy, the Senate resolved there was a need for an investigation so as to enhance energy management in Kenya.
“The committee will investigate contracts signed by IPPs, detailing the cost, capacity, and duration of the contractual agreements and their implications on the affordability of electricity in the country,” the Order Paper detailed the scope of the inquiry.
The committee on energy will further be mandated to look at the discrepancies in the cost of electricity sold to Kenya Power by KenGen, imports from Ethiopia, and IPPs.
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Marsabit and Samburu counties will also be able to increase electricity connectivity after the Senate resolved to investigate electricity generated by Lake Turkana.
This was after it was revealed that the electricity was diverted to the national grid and bypassing the two counties.
The Senate further put to task the Ministry of Energy to come up with a policy framework dealing with costs and clean energy.
“The policy framework should detail a plan on lowering the cost of electricity as a way of addressing the high cost of living.
“It should also look at enhancing clean energy by switching to renewable sources of energy such as geothermal power, and wind energy, among others as a way of reducing the carbon footprint,” the Order Paper mandated.
The motion to reduce electricity prices was tabled to the Senate by Marsabit Senator Mohamed Chute.
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