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{
    "id": 90686,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/90686/?format=api",
    "text_counter": 320,
    "type": "speech",
    "speaker_name": "Mr. James Maina Kamau",
    "speaker_title": "",
    "speaker": {
        "id": 34,
        "legal_name": "James Maina Kamau",
        "slug": "maina-kamau"
    },
    "content": "On the relationship among the sub-sector players, by an agreement signed on 26th September, 1973 between the Government and East African Power Lighting Company Limited, the predecessor to the KPLC, the Government contracted the EAPL to implement sub-economic rural electrification project. It again established a rural electrification fund to be used to finance the capital costs. In 2006, the Energy Act placed these arrangements on a statutory footing by establishing the Rural Electrification Programme Fund to among other responsibilities, manage the fund. Since its establishment, the REA has implemented several rural electrification programme schemes directly through private contractors while the KPLC has implemented other schemes on behalf of the Government, mainly those that were in progress at the formation of the REA. Regardless of whichever organization has implemented the schemes, all have been handed over to KPLC upon completion for operation and maintenance but the ownership of the assets has remained with Rural Electricity Authority (REA). On construction of projects, Mr. Temporary Deputy Speaker, Sir, REA selects projects on the basis of its annual plans and it is responsible for its design, survey, obtaining way-leaves, consent and approvals. It is also responsible for construction of all projects and procurement of all goods, works and services for construction. Upon completion, REA hands over the projects and associated documents to the Kenya Power and Lighting Company (KPLC). On the other hand, the KPLC plans for the impact of the project or its networks and is free to visit construction sites and carry out inspection and recommendations, if any, to REA. On marketing of the project, Mr. Temporary Deputy Speaker, Sir, REA is responsible for all marketing activities prior to commissioning, send quotations to customers, receive capital contributions and compile a list of paid up customers and forward the list to KPLC. KPLC is responsible for supply of electricity to all projects, collection and storage of revenues. KPLC also operates and maintains handed-over projects at own cost up to the level of compensation allowed from time to time by the Electricity Regulatory Commission (ERC) in KPLC retail tariffs. Mr. Temporary Deputy Speaker, Sir, I do not wish to read all this because the Report has already been tabled before this House. But I would read something briefly here. KPLC is a single buyer for all the power that is generated in Kenya and injected into the interconnected grid for sale to consumers. The trading arrangement between KPLC and each of the generators are governed by a long term; Power Purchase Agreement (PPA), approved by ERC. Such PPAs comprise the capacity charge---"
}