Independent Power Producers (IPPs) on Tuesday, April 18, admitted that a drop in the purchase of electricity by the government made them sell power at higher prices.
Appearing before the Senate Standing Committee on Energy, Triumph Power Generating company called on the state to maximize the net electricity produced locally.
The firm revealed that they are forced to sell at higher prices to make a profit to cater for the unutilised wattage.
"This is the after-effect of us (IPPs) not being used in the manner we are supposed to be. If the state used at least 65 per cent of the power we produce, then the costs would go down," the firm explained.
Triumph called on the state to explore using electricity from the IPPS not just as a backup but to complement the main supply.
The committee heard that the state currently pays Ksh40,000 per kilowatt-hours capacity charge regardless of whether or not it takes up power from producers.
Chairperson Wahome Wamatinga called out the state over its failure to plan in advance based on the nation's electricity demands.
Wamatinga called on the government to consider its structures and agreements with the IPPs.
Meanwhile, KenGen officials told the Committee that it had the capacity to generate more power at a cheaper cost than the IPPs.The Senators questioned why the state would opt to buy power from the IPPs.
However, they established that the government was bound to the producers through contracts, with a number running to 20 years.
Wamatinga proposed that the IPPS should collectively purchase the fuel used to produce power, through the government which would result in discounts.
On March 18, Energy Cabinet Secretary Davis Chirchir admitted that the high costs were occasioned by the over-reliance on diesel-produced electricity due to low hydro production.
He noted that the Ministry would explore other sources such as geothermal, wind power, and green energy.
