•The Presidential Taskforce on Review of Power Purchase Agreements recommended negotiations with IPPs to secure an immediate reduction in power purchase tariffs.
•Energy CS Monica Juma is confident that the cost of electricity will drop by 33 per cent before Christmas, as the government renegotiates power purchase deals. Kenya Power board chairman Vivienne Yeda and Kenya Power acting managing director and CEO Rosemary Oduor, during the company’s 100th AGM held on Friday/HANDOUT Kenya Power is a willing partner to Independent Power Producers (IPPs) who endeavor to provide to Kenyans affordable and reliable power, board chair Vivienne Yeda has said.
This, even as she affirms reforms recommended by the Presidential Taskforce on Review of Power Purchase Agreements will be fully implemented.
This includes re-negotiation of contracts with IPPs.
Formed in March, the Presidential taskforce which gave its report in September recommended for a review and renegotiations with IPPs to secure an immediate reduction in Power Purchase Agreements (PPA) tariffs.
It called for the cancellation, with immediate effect, of all pending negotiations of PPAs and ensuring future agreements are aligned to the “Least Cost Power Development Plan”.
The taskforce was formed on the recommendation of the Kenya Power board which took office last year.
This was after a review of among other things, KPLC’s financial position and prospects.
The board, then, concluded that the company’s future was imperiled both by the terms of existing PPAs with IPPs, and by the pipeline of potential PPAs that were then under consideration.
Last month, Energy CS Monica Juma announced strict implementation of recommendations by the task force, even as she invited IPPs to the negotiation table.
Yesterday, Yeda said the board is fully aligned with the Cabinet Secretary’s position.“As we implement these recommendations, let me make it clear that KPLC is not at war with IPPs,” she said.She was speaking during the company’s 100th Annual General Meeting, held virtually.“It would be a pity if IPPs did not take up this invitation, but it will not stop your company’s determination to see that we arrive at a fair, win-win position in so far as PPA terms are concerned,” Yeda said.She said KPLC is keenly aware of the unsustainability of the terms and conditions of the existing PPA agreements.Yeda said Kenyans are punished by the ever-increasing cost of electricity including energy from their own natural resources including geothermal, wind and solar.“Is it not a shame that in these 100 years, despite all these resources, Kenyans do […]
