IPPs aim to end Kenya Power’s monopoly by Selling power directly

Independent power producers (IPPs) have petitioned Parliament for permission to break Kenya Power’s monopoly and provide electricity directly to consumers.

In order to prevent power theft, the IPPs have also requested a review of Kenya Power’s operational effectiveness.

The Electricity Sector Association of Kenya (ESAK) urged legislators to enact reforms that will promote more competition in the power generation industry’s support services, transmission networks, and generation facilities.

In order to prevent power rationing in the country within the next three years, they want Kenya Power’s monopoly to be opened to competition.

“We propose that you open the Kenya Power market to competition from local independent power producers. This House passed the Energy Act, 2019 which provides for competition,” George Aluru, the ESAK chairperson, told the Senate Committee on Energy.

“There are 29 regulations lying at the Energy and Petroleum Regulatory Authority (Epra) that need to be passed by Parliament to open up the power generation market and competition in power transmission.”

The association testified before the committee that is looking into the high price of electricity in public. KenGen is one of the independent power producers who have been questioned by the committee so far about the skyrocketing price of electricity.

The Wahome Wamatinga-led committee is working to determine why IPPs are charging Kenya Power exorbitant prices for electricity, which is why power costs are so high.

In light of worries that the company has signed contracts committing it to take more electricity than it can sell, Kenya Power’s power purchase agreements continue to be contentious.