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{
"id": 196515,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/196515/?format=api",
"text_counter": 41,
"type": "speech",
"speaker_name": "Mr. Murungi",
"speaker_title": "The Minister for Energy",
"speaker": {
"id": 93,
"legal_name": "Kiraitu Murungi",
"slug": "kiraitu-murungi"
},
"content": " Madam Temporary Deputy Speaker, yesterday, 15th April, 2008, the hon. Member for Rangwe Constituency, Mr. Ogindo, requested me to issue a Ministerial Statement on the disconnection of electricity supply to various water service companies, especially those in the western region. I wish to make the following Ministerial Statement in connection thereof. As hon. Members may be aware, the Kenya Power and Lighting Company (KPLC) purchases electricity in bulk from the Kenya Electricity Generating Company (KenGen) and the Independent Power Producers (IPPs) on a 40-day credit term and sells it to customers. Electricity consumers, and this includes water service companies, Ministries and Government departments, are expected to pay all their monthly bills promptly to enable the KPLC meet its financial obligations. Hon. Members may also be aware that 75 per cent of the revenue from electricity sales to customers goes to pay KenGen and the IPPs for bulk electricity purchase. This means that the KPLC is left with only 25 per cent of the total sales revenue to finance other financial commitments, including power transmission and deterioration system costs. Madam Temporary Deputy Speaker, as at 31st March, 2008, the Ministry of Water and Irrigation, and its water service companies across the country, owed the KPLC a total sum of Kshs185,349,485 in electricity bills. This accrued debt is causing serious financial problems for the KPLC. As a result, the KPLC is forced to resort to disconnection of electricity supply to all customers, including water service companies as well as other consumers, as a means of compelling them to pay for their electricity services. Madam Temporary Deputy Speaker, several meetings have been held between the Chief Executive Officer of the KPLC and the Permanent Secretary in the Ministry of Water and Irrigation with a view to reaching a sustainable agreement on settlement of these arrears. Arising from one of those meetings, it was agreed, among other things, that the Ministry of Water and Irrigation would make a down payment of Kshs155 million by the end of April, 2007. That is one year ago. They also agreed that the balance would be cleared over a period of time. Unfortunately, this amount still remains unpaid, forcing the KPLC to be left with no other alternative except to disconnect the water service companies. Madam Temporary Deputy Speaker, the KPLC has continued to engage the Ministry of Water and Irrigation in discussions with a view to reaching an amicable settlement of this matter. I would like hon. Members to know that it is important for all Government Ministries and parastatals, including water service companies, to settle their electricity bills every month to avoid disconnection. I am aware of the acute suffering that this disconnection policy has caused to Kenyans at large, and especially public institutions such as schools. To alleviate suffering to the members of the public and public institutions, I have today directed the KPLC to reconnect electricity to all water service companies in the entire country for the next 30 days."
}