Kenya Power and Lighting Company (KPLC) will have all its Power Purchase Agreements (PPAs) reviewed by a team appointed by President Uhuru Kenyatta.
The 19 member task force will look into compliance with the PPAs and associated deals with the state’s policies, laws and regulations. It will also have the mandate to recommend actions to be taken, including ending or renegotiating these agreements.
John Ngumi will chair the task force. Other members include Kennedy Ogeto, Aaron Ringera, James McVie, Wanjiku Wakogi, Caroline Kittony, Mohammed Nyaoga, Isaac Kiva, James Mwangi, Anne Erikson, Yida Kemoli, Sachin Gudka, Elizabeth Rogo, Stanley Kamau and Elizabeth Muli. Jasper Mbiuki, Lillian Abishai and Elsie Mworia will be joint secretaries to the Taskforce.
“The team will also look into the viability of all IPP projects that are on the drawing board, being implemented or currently in operation and make appropriate recommendations,” reads the Gazette notice.
KPLC risk appetite to be reviewed
Other duties of the task force will be to review the allocation of risk between the independent power producers and KPLC under the PPAs and make appropriate recommendations.
Review the Take-or-Pay approach applied under the PPA structure and recommend a viable Pay-when-Taken (merchant plant) approach, or any other viable payment structure, for use in independent power generation projects.
Develop a suitable strategy for KPLC engagement with the independent power producers and lenders to achieve relief for electricity consumers and ensure the energy sector’s long-term viability and sustainability.
Review the current methods for sourcing independent power producers and recommend appropriate alternative sourcing frameworks, including energy auctions.
Recommend legislative, regulatory, policy or administrative interventions for implementing the recommendations and strategies of the Taskforce.
This team will also design a detailed action plan for KPLC to implement recommendations it has made.
The Taskforce is to report to and be accountable to President Kenyatta through the Cabinet Sub-committee on Kenya Power and Lighting Company.
The task force members will serve for six months with effect from the 29th of March 2021.
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