Independent power producers (IPPs) have revealed that the State is yet to open talks for a review of power bills agreements signed over the years by Kenya Power, signalling further delay of the promised electricity bill cut for homes and businesses by 15 per cent.
IPPs said they were yet to receive invitations for talks on cutting wholesale power prices and ultimately lower consumer bills.
This contradicts a Ministry of Energy statement issued earlier in the year, indicating that the talks had started and promised cheaper electricity by March 31.
The Electricity Sector Association of Kenya (ESAK) maintained that talks were yet to start amid opposition from the foreign-backed power producers to lower tariffs.
“As far as I know we are still waiting for the ministry to call us for talks which they have not done to date. None of the big power producers have met them to date,” George Aluru, the chairman of ESAK as quoted by business daily
The Ministry of Energy had opted for negotiations over forcing the IPPs to lower tariffs in the wake of opposition from the firms.
Earlier this year, Kenya Power cut retail tariffs hinged on its lowering system losses — the share of electricity bought from generators such as KenGen that does not reach homes and businesses due to power theft and leakages from an aging network.
The state is looking forward to a similar cut in the power bills in this review based on the review of PPAs after a task force appointed by President Uhuru Kenyatta found a huge disparity between the tariffs charged by the main power producer KenGen and IPPs.
The IPPs, which are owned by powerful institutions like the World Bank, opposed a unilateral push to lower the cost at which they sell electricity to Kenya Power, setting the stage for a legal battle
This reduction in power bills is expected to boost social-economic growth by reducing the cost of living, putting more money in Kenyans’ pockets and reducing the cost of doing business.
