Parliament rejects calls to raise moratorium on Power Purchase Agreements
The National Assembly has rejected calls by the Ministry of Energy to raise the moratorium on Power Purchase Agreements (PPAs).
Instead, parliament fingered the agreements for the excessive value of electrical energy which had pushed away buyers and led to an increase in value of manufacturing.
This emerged on the finish of two day retreat for the highest management of parliament in Enashipai Spa in Naivasha the place parliament vowed to steer in bringing down the price of electrical energy.
The Ministry had approached Parliament with a request to raise the moratorium stressing the urgency of increasing energy sources to fulfill Kenya’s rising power demand.
The Speaker of the National Assembly Moses Wetangula promised that parliament would work intently with the Kenya Private Sector Alliance (KEPSA) in addressing investor challenges.
He admitted that the excessive value of electrical energy remained a problem however was fast to notice that parliament was addressing these via pleasant legal guidelines.
Wetangula nevertheless decried the rising variety of courtroom circumstances difficult varied tasks noting that these have been derailing improvement and progress.
“We are coming up with a law to protect whistle-blowers as part of dealing with graft and we shall protect investors on condition that they also produce quality goods,” he mentioned.
On the moratorium Mwala MP (Eng.) Vincent Musyoka famous that there have been no substantial bases for lifting the moratorium on Power Purchase Agreements.
Musyoka, who chairs the Departmental Committee on Energy mentioned {that a} report on the price of power was prepared and can be introduced in parliament quickly.
“We don’t see any reason to lift the moratorium and if we do there shall be conditions which include reviewing the current agreement on power tariffs,” he mentioned.
He proposed that if the moratorium is lifted, Independent Power Producers with current wind and photo voltaic installations ought to be required so as to add backup power storage to harness extra power produced throughout the day for peak demand.
Kilifi North Owen Baya mentioned the rationale why the moratorium was put in place was as a result of the agreements have been dangerous and so they have been making the Kenyans pay extra.
“We are concerned by the high cost of power in the country which is eroding investor confidence and there is a need to first look at the high cost of electricity,” he mentioned.
On his half, Robert Manyara a member of KEPSA lauded the assembly with parliament noting that this could assist deal with challenges going through the non-public sector.
“Use of technology will not only increase production but also lead to job creation while reducing the cost of production,” he mentioned.
