Energy Committee Questions Ministry on High Coat of Electricity in the Country
The National Assembly Departmental Committee on Energy led by chairperson Hon Eng. Vincent Musyoka (Mwala), today engaged the Ministry of Energy & Petroleum on the high cost of electricity and measures put in place to address the problem.
The meeting was attended by the Cabinet Secretary & PS for the Ministry of Energy & Petroleum, Managing Directors for KENGEN, KPLC, GDC and Director General for EPRA among others.
Amongst the areas of concern highlighted by the Committee include; the role played by the Ministry in the Power Purchase Agreements (PPA’s), details of the installed & effecting capacity for the last and the next 5 years, components that make up the consumption charge & how the charge is computed, how the Foreign Exchange Rate Fluctuation Adjustment (FERFA) is computed monthly and the details for the monthly economic merit order of projected energy vis-a-vis the actual dispatch.
In his response to the Committee’s concerns, the CS Energy, Mr. Davis Chirchir said that the basis for monthly computation is calculated based on the nearest shilling and that the discrepancies in costing of units is based on the Dollar rating.
During today’s consultations, the Hon. Musyoka-led Committee directed the EPRA Director General, Mr. Daniel Kiptoo to produce verifiable evidence of the public participation meetings that sought upward review of tariffs as from 1st April, 2023.
The Committee members, distanced themselves from neither knowledge nor involvement on any public participation meetings conducted by EPRA in the month of March, 2023. Emphasizing that as the people’s representatives, EPRA should have consulted them.
“So you decide the allowable interests on tariffs without the knowledge of the Committee? We wont allow EPRA to make baseless adjustments on the pricing in this manner” said Hon. Vincent Musyoka.
In response, Mr. Kiptoo committed to furnish the Committee with sufficient evidence that as an Agency, they undertook public participation meetings that informed the change in formula of electricity pricing.
It was also resolved that the Committee shall organize another session with the Ministry of Energy in order to conclusively address the pertinent issues raised by legislators in the interest of Kenyans.
The Committee’s Inquiry is scheduled to continue next week, with the following stakeholders set to appear before the MPs: Independent Power Producers (Lake Turkana Windpower, Kipeto Energy, Tsavo, Rabai and Orpower), KAM, KEPSA, IEK, FKE, COTU, KUPPET, LSK, KAM, UKCS, Attorney General, Auditor General, CS Treasury & National Planning, Academia Sector experts, Civil Society/Religious Organizations.
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