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"id": 233878,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/233878/?format=api",
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"type": "speech",
"speaker_name": "Mr. Obwocha",
"speaker_title": "The Minister for Planning and National Development",
"speaker": {
"id": 356,
"legal_name": "Henry Onyancha Obwocha",
"slug": "henry-obwocha"
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"content": " Thank you, Mr. Speaker, Sir. I will be very brief. In moving the Bill, the hon. Members have been told that we are amalgamating the two Acts; the Electric Power Act and the Petroleum Act, so that we have the Energy Act. What is important to this House is that the Energy Regulatory Commission (ERC) will take care of all projects under the Rural Electrification Programme (REP). No Member of Parliament will have to just sit here and hear about electrification programmes without seeing something happening in his or her constituency. Therefore, the ERC will be extremely important for us. The ERC will have the mandate to mobilise resources to accelerate the REP. We need to put in place the ERC to handle the ongoing projects. We are aware that by 30th June, 2007, the Ministry is proposing to have carried out 940 projects all over the country. Out of which, 72 of them will be done by the Kenya Power and Lighting Company (KPLC) team. About 320 projects will be undertaken on the basis of Labour and Transport. The balance will be undertaken on Turn-Key Consultancy. Therefore, by the end of the year, we are expecting to see work being done by the KPLC. The ERC will undertake the regulatory functions of the Electricity Regulatory Board (ERB). It is important to have this ERC, so that the issues that arise can be dealt with in terms of regulation. But more importantly, this commission should have power to control even the oil prices. When we have problems in the oil industry as we have today, it will take care of them. Currently, there is a standoff between the KenGen and the KPLC on the issue of tariffs. I want to advise the Minister who has just resumed his duties in the Ministry of Energy, that this country cannot afford an increase in tariffs for several reasons. One, the KenGen is making enough profits at the current level of Kshs1.76 that it is charging. This year it made Kshs3.7 billion in terms of profits. Very few companies in this country make that kind of money. In any case, the consumer is now paying a lot of money to the KenGen. Therefore, the Minister should not be persuaded to increase any tariffs. Mr. Speaker, Sir, the other issue I want to talk about is petroleum. Looking at the provisions in this Act, we need to find a way of containing the oil companies. We know that they are not making much profits. Mr. Speaker, Sir, a lot of the money they are making is remitted to the Treasury. But we, as a House, need a mechanism to control and save the people of this country from companies that increase oil prices indiscriminately. Even when we know that the crude oil prices in the world market have come down, they just deliberately refuse to lower the prices. Mr. Speaker, Sir, I want to add my voice on the issue of the Kenya Pipeline Corporation (KPC) although it has been clarified by the Ministry. The Managing Director and the Chairman have been doing a good job. They have turned round that corporation which was a cash-cow. They made profits in excess of Kshs2 billion after paying all their taxes. These allegations that are being made about the completion of their headquarters at the cost of Kshs500 million, are not true. The consultants and court agreed through a tabulated system that it would cost the KPC Kshs386 million to finish their headquarters. So, there is no money that has been corruptly received by either the Chairman or the Managing Director, as is being alleged. Therefore, I would also urge the Minister who has just resumed his duties at the Ministry that since the Managing Director of the KPC has done a good job, he be retained to continue doing so. Mr. Speaker, Sir, finally, on the oil exploration, the country has been divided into various blocks. I encourage the Minister and the National Oil Corporation of Kenya (NOCK) to get those companies that would want to undertake oil exploration to exploit our natural resources and expand our revenue base. As we know, our Budget is 95 per cent locally-funded and 5 per cent donor-funded. But we would like to expand our revenue. The Australian company is going to drill the Lamu coast at the end of this month. We are all waiting very anxiously to see what will come November 21, 2006 PARLIAMENTARY DEBATES 3789 from there. Mr. Speaker, Sir, I think this is a good Bill. Hon. Members should contribute and give proposals where they think we should improve the energy sector. I think those running this sector should look 50 to 100 years ahead from now, so that we can develop our capacity. Right now, we have 1,100 megawatts. But if we go along the Kenya Vision for 2030, we need about 3,000 megawatts. So, we should look at alternative ways of generating power. Ethiopia which is our neighbour has an excess of power. I think we should get power from Ethiopia because it is fairly cheap. With those remarks, I beg to second."
}