Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli has accused investors who sealed multi-billion deals during Retired President Uhuru Kenyatta's government of being the sole reason why Kenyans are paying high prices for electricity tokens.
Addressing Members of the National Assembly, Atwoli explained that Independent Power Producers (IPPs) who secured power supply deals during the Jubilee administration were extorting Kenya Power, hence the high cost of electricity.
Atwoli called on the Members of Parliament to immediately make recommendations that would see the revocation of the past power supply deals with Kenya Power.
"I call upon the government of Kenya to tame Independent Power Producers (IPPs) by revoking all Power Purchasing Agreements (PPAs) that have been signed with various IPPs and instead engage KenGen or establish other state parastatals to handle electricity generation and supply," Atwoli stated.
Atwoli appeared before the National Assembly Departmental Committee on Energy where he submitted COTU (K)’s proposals for reducing the high cost of electricity in Kenya.
The IPPs are alleged to have inflated the cost of power generated, resulting in higher electricity bills for Kenyan consumers who buy energy from the national power utility company.
The COTU Secretary General stated that his allegations are supported by reports from Kenya Power itself, as well as by the Energy and Petroleum Regulatory Authority (EPRA).
"In a recent report, EPRA stated that it had found evidence that some IPPs were charging Kenya Power more than the actual cost of generating power.
"The report revealed that this was due to a number of factors, including inflated fuel costs, excessive profit margins, and inadequate oversight by EPRA," Atwoli told MPs.
Similarly, Kenya Power officials have previously told MPs that the company loses billions of shillings each year due to the inflated costs of power from IPPs.
The company noted that judicial intervention would be key in reviewing some of the contracts that were signed with the IPPs, and that it is also working with EPRA to tighten regulations in the sector.
"The accusations against IPPs have raised concerns about the reliability of Kenya's power supply. Kenya Power has said that it is struggling to meet the demand for electricity and that the inflated costs of power from IPPs are making it even more difficult to do so," Atwoli noted.
Members of the Departmental Committee on Energy assured Atwoli that they are committed to addressing the problems in the power sector, and will not stop until the issue with IPPs is fully addressed.
"The government has said that it is working to increase the supply of power from renewable sources and that it is also reviewing the regulations governing the IPPs.
"The accusations against IPPs are a serious matter. They could have a significant impact on the cost of electricity in Kenya and on the reliability of the power supply. The government must take swift action to address these problems and to ensure that Kenyan consumers are not being overcharged for power," Committee Chairman Vincent Musyoka stated.
