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Power Taskforce Recommends Reduction Of Power Bills By 33%

BY Juma · September 29, 2021 05:09 pm

KEY POINTS

The Taskforce on Review of Power Purchase Agreements has recommended the reduction of power costs by the Kenya Power and Lighting Company by 33 percent in the next four months.

The Taskforce on Review of Power Purchase Agreements has recommended the reduction of power costs by the Kenya Power and Lighting Company by 33 percent in the next four months.

The report was handed over to President Uhuru Kenyatta who, according to State House, considered it and realized the vast differences between power purchases by Kenya Power from KenGen and Independent Power Producers (IPPs).

According to the report, the existing risk allocation imbalances between KPLC and IPPs are further exacerbated by poor contract management frameworks; and an uncoordinated institutional architecture that inadvertently contributes to enhanced operational costs passed on to consumers.

“The President has also examined and welcomed the recommendations of the task force that establish a path towards the reduction of the cost of electricity by over 33 percent within four months,” read the statement from Statehouse.

The consequence of the proposed interventions is that a consumer who previously spent 500 shillings per month on electricity shall by 31st December 2021 pay 330 shillings per month.

Among the recommendations by the task force include the review and renegotiation of contracts between Kenya Power and IPPS, the immediate cancellation of unconcluded PPA negotiations, and the fast-tracking of reforms at Kenya Power.

“In affirmation of this seminal and progressive solution to a decadeslong problem, His Excellency the President has directed the Cabinet Secretary, Ministry of Energy to secure the immediate implementation of all the recommendations of the Taskforce by Christmas Day, 2021,” read the statement.

At the same time, KPLC has been directed to adopt standard PPAs and proposed Government Letters of Support (LOS) along the lines of the drafts provided by the Taskforce. KPLC is also expected to undertake a forensic audit on the procurement and system losses arising from the use of Heavy Fuel Oils (HFOs).

Read More: Cost Of Electricity To Hit A 5-Year High This Month

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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