KENYA GOES BACK TO DRAWING BOARD OVER HIGH ELECTRICITY BILLS
THE energy ministry has been forced back to the drawing board over the rising cost of power.
This comes as the ministry grapples with how to handle the dilemma between the pressure from the public to reduce electricity tariffs on one hand, and the need to guarantee investor return on investments.
Faced with a raft of variable charges that make the largest component of power bills, the ministry is now going for several measures that will make a longterm gradual impact on the cost of power, in a bid to alleviate the pain of searing bills.
Energy Cabinet Secretary Charles Keter told the Sunday Nation that apart from the recently proposed gradual reduction on the number of diesel-run power plants, massive power lines and close to 40 power stations will be built to evacuate electricity from green sources and improve quality in the next one year.
The termination of the lengthy power purchase agreements signed with independent power producers is the trickiest of the measures, though. While their reduction has a huge impact on the cost of power as the less quantity of diesel used would be both economical and environmentally-friendly, the plants are needed to feed the grid during peak hours and the government is keen not to discourage investors in the sector by forcing several terminations or asking for very low prices.