Kenya cancels power purchase negotiations, replaces energy minister

[Gikomba_Hawker]

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Jameni,

Am I reading correctly? Why pay Kenya Power for electricity that is not used? How long has this been going on? I really feel sad that Kenyan consumers have had to put up with this nonsense.

Consumers in the East African economy often complain of steep power bills, which are partially due to idle capacity charges that compensate power generators for electricity that is generated but never used.

Under a typical power purchase agreement, a power producer gets paid for any electricity produced, even if it is impossible for Kenya Power to sell it to consumers because of reasons including excess production.

Kenyatta's office said the review team found that there was a huge disparity between the tariffs charged by main power producer Kenya Electricity Generating (KenGen) KEGN.NR and independent power producers.

KenGen's prices were much lower than those of the independent power producers. Kenya Power buys most of its electricity from state-controlled KenGen.

Kenya cancels power purchase negotiations, replaces energy minister
https://www.nasdaq.com/articles/kenya-cancels-power-purchase-negotiations-replaces-energy-minister-2021-09-29

[RV Pundit]

Wrong - they proposed cancellation of IPPS under negotiation -  NOT those already singed years ago.

[Gikomba_Hawker]

Whatever the case, this nonsense needs to be ended in total.

Wrong - they proposed cancellation of IPPS under negotiation -  NOT those already singed years ago.

[RV Pundit]

Not easy - unless kenya proof corruption - these are international contracts - Ghana tried - and US kicked them out of Power Africa - and you still get sued internationally

Whatever the case, this nonsense needs to be ended in total.

[Gikomba_Hawker]

This is really sad. I would love to get the whole picture, not just the KenGen/Kenya Power story. Is there a list of all these electricity agreements?

Not easy - unless kenya proof corruption - these are international contracts - Ghana tried - and US kicked them out of Power Africa - and you still get sued internationally

Whatever the case, this nonsense needs to be ended in total.