Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1224721,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1224721/?format=api",
    "text_counter": 105,
    "type": "speech",
    "speaker_name": "Laikipia County UDA",
    "speaker_title": "Hon. Jane Kagiri",
    "speaker": null,
    "content": "Kenya Electricity Generating Company PLC (KenGen), a government-owned company, and from Independent Power Producers (IPPs); recognizing that, Kenyan Power has entered into Power Purchase Agreements (PPAs) with both KenGen and the IPPs and procures power from them at unregulated rates; noting that, there is need to regulate all IPPs in the country and publicize their locations, stakeholders, directors, management and their addresses and agreements entered into with Kenya Power; cognizant that, recommendations from past taskforce reports relating to power purchase and rates have not been implemented; deeply concerned that, Kenya Power has in the past procured a larger quantity of power from the IPPs at a greater cost, rather than from KenGen, leading to higher cost of power; cognizant of the fact that, there is need to put in place policies, strategies and regulatory measures for better planning to moderate the cost of electricity and enable access to energy by all particularly in the manufacturing sector to ease the cost of production and doing business; this House therefore resolves that: 1. the Departmental Committee on Energy undertakes an inquiry into the operations of Kenya Power in relation to agreements entered into with IPPs, factors affecting the cost of electricity, including over- reliance on IPPs against available renewable and other energy sources, and measures to reduce it and submits a report to the House within one hundred and twenty (120) days; 2. in the meantime, the Ministry and Kenya Power should not enter into new contracts with any IPPs until the House makes a resolution on the matter; 3. informed by the reports of previous task forces on the matter, the Ministry engages in negotiations with power producers with a view to reducing the cost of power; and 4. the Ministry and Kenya Power develop suitable strategies for engagements with the IPPs, in order to provide relief for electricity consumers and ensure the long-term viability and sustainability of the energy sector. According to world best practices, any business or enterprise allows an acceptable loss of between 2 and 6 per cent. That means that the average is 4 per cent. If I may put it with a better example, a woman who buys a sack of cabbage from Marikiti Market will give herself an acceptable loss of between one and two cabbages that could be rotten. A greater example is a bodaboda person who delivers trays of eggs in a local town. The rider will give himself an acceptable loss of around one tray or 10 eggs that will crack in between the deliveries of eggs to customers. According to the global best practices in the energy sector, the acceptable loss is 13.5 per cent. However, the Kenya Power and Lighting Company has an acceptable loss of 25 per cent. To put it in simpler terms, what that means is that in every four units the Kenya Power and Lighting Company purchases, one unit is lost. In the year 2022, the Kenya Power and Lighting Company encountered a loss of 22.43 per cent. Looking at those figures, you would assume that it is a small percentage. The Kenya Power and Lighting Company went ahead to request the Energy and Petroleum Regulatory Authority (EPRA) to allow it to pass on 19.9 per cent of that loss to consumers; this was up from 14.5 per cent in the previous year. The 22.43 per cent we are talking about translates to around Ksh35.7 billion per year lost at the Kenya Power and Lighting Company. Again, this is a figure that we need to put into perspective. Recently in this House, we approved the budget estimates. It is good to take this honourable House through what the Ksh35.7 billion can do for us. In the State Department for The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}