{"id":37901,"date":"2021-10-25T16:26:57","date_gmt":"2021-10-25T16:26:57","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=37901"},"modified":"2021-10-25T14:19:10","modified_gmt":"2021-10-25T14:19:10","slug":"energy-cs-promises-early-christmas-gift-to-electricity-users","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users","title":{"rendered":"Energy CS promises early Christmas gift to electricity users"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>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.<\/p>\n

Yesterday, Juma confirmed a number of IPPs are willing to re-negotiate with the government. Contracts found to have loopholes will be terminated.<\/p>\n

There are 22 known Independent Power Power Producers contracted by Kenya Power.<\/p>\n

\u201cIt is my expectation that all IPPs operating in Kenya will demonstrate good faith as we commence this process,\u201d the Cabinet Secretary told Editors at a briefing in Nairobi.<\/p>\n

The energy ministry is leading key reforms at Kenya Power and the country’s energy sector at large, following recommendations by the Presidential Taskforce for a review of Power Purchase Agreements (PPA).<\/p>\n

The government has marked Kenya Power ‘A Special Project’.<\/p>\n

\u201cI will drive these reforms firmly. I believe that the proposed reforms will deliver the recommendations of the task force,\u201d Juma said.<\/p>\n

She took over the energy docket last week from CS Charles Keter who has moved to devolution.<\/p>\n

The government wants to bring down the cost of electricity by Sh8 per unit with a major focus being cutting purchase tariffs on contracts between Kenya Power and IPPs.<\/p>\n

Some companies have been selling electricity up to 25 times more than the cheapest power producer\u2013Kenya Electricity Generating Company(KenGen), which has been giving Kenya Power a unit at Sh5.48.<\/p>\n

The taskforce called for fast-tracking of reforms at Kenya Power, including changes in leadership, and making the firm a commercial entity that is both profitable and capable of delivering efficient and cost-effective electricity supply to consumers.<\/p>\n

The government has since canceled all pending negotiations of PPAs with new deals set to be aligned to a Least Cost Power Development Plan (LCPDP).<\/p>\n

Areas of focus include procurement of PPAs, compliance by the parties, terms of the contract and accuracy of costs passed on by the IPPs to Kenya Power and the consumers.<\/p>\n

IPPs supply 25 per cent of KPLC\u2019s power, but account for 47 per cent of power purchase costs.<\/p>\n

By way of comparison, KenGen supplies 72 per cent of power but accounts for 48 per cent of KPLC\u2019s power purchase costs.<\/p>\n

Purchases from Rural Electrification and Renewable Energy Corporation and imports from Uganda and Ethiopia account for the balance two per cent.<\/p>\n

The ministry is also pushing for reduction in system losses at Kenya Power, which is denying the firm revenue.<\/p>\n

Meanwhile, the utility firm is expected to make public names and beneficial ownership of all IPPs with which it has contractual arrangements.<\/p>\n

In the last financial year, Kenya Power paid a total of Sh93.9 billion to IPPs, a cost expected to go down in reviewed terms.<\/p>\n

A steering committee has been set up, on a six-month tenure, to help with reforms in the energy sector.<\/p>\n

It is expected to submit its first progress report to President Uhuru Kenyatta on or before December 5.<\/p>\n

According to the President, cutting off expensive power producers will see a unit of electricity go for Sh16 from Sh24 which is two-thirds of the current tariff.<\/p>\n

Consequently, a consumer spending Sh500 per month on electricity will pay Sh330, saving Sh170.<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. 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. Yesterday, Juma confirmed a number of IPPs are willing to re-negotiate with the government. Contracts found to have loopholes will be terminated. There are 22 known […]<\/p>\n","protected":false},"author":84,"featured_media":37900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[6857,7003,544],"class_list":["post-37901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nEnergy CS promises early Christmas gift to electricity users - kenya<\/title>\n<meta name=\"description\" content=\"Energy CS Monica Juma is confident that the cost of electricity will drop by 33 per cent before Christmas, as the govern ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Energy CS promises early Christmas gift to electricity users\" \/>\n<meta property=\"og:description\" content=\"Energy CS Monica Juma is confident that the cost of electricity will drop by 33 per cent before Christmas, as the govern ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-25T16:26:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/10\/img-6176bcc1dd346.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"482\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Energy CS promises early Christmas gift to electricity users\",\"datePublished\":\"2021-10-25T16:26:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\"},\"wordCount\":539,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/10\/img-6176bcc1dd346.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/energy-cs-promises-early-christmas-gift-to-electricity-users\",\"name\":\"Energy CS promises early Christmas gift to electricity users - 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