Rabai Power denies dealing with EPRA and KPLC in recent hiked cost of energy
Rabai Power Limited (RPL) has dismissed any underhand dealings with the Energy Petroleum and Regulatory Authority (EPRA) and the Kenya Power Lighting Company (KPLC) in the recent witnessed high costs of energy.
This follows the ongoing probe over the huge disparity between the amount Kenya Power pays to Independent Power Producers (IPPs) and State-owned KenGen for electricity sales.
Appearing before the National Assembly Energy Committee on Wednesday, Zablon Okwokwu, Finance Manager at Rabai Power Station said they are guided by power purchase agreement and cannot do anything besides.
In a hard pressed session RPL denied to have been involved in any malpractice including purchasing power from the KenGen and selling it to KPLC.
RPL revealed that their current capacity charge is at a fixed rate nearing Ksh.168.88 million (1.3 million Euros) monthly.
Garissa Township Member of Parliament Aden Duale, in a similar query on which the law maker seemed unsatisfactory to the answers, demanded an explanation on how the 90 MW power plant is regulated by EPRA especially on adjusting electric power tariffs, structures and investigating tariffs charges.
- Litre of petrol shoots to Ksh.134.72 in EPRA review
- KPLC receives Ksh.5 billion from part of World Bank’s loan facility
- CS Keter says KPLC profit warning is in the interest of shareholders
Mr.Okwokwu told the Committee that there has been hardly any renegotiation of charges with the regulator.
“The PPA itself is approved by EPRA, many occasions we hold discussions but not on tariffs,” said Okwokwu.
“The charge in euros is 0. 0063 per kwh and excess tax is euro 394 per start and the fuel charge according to the current charge which keeps varying between Ksh.8 -12 per kwh.”
He said there had never been any point when the firm held discussions with both KPLC and EPRA.
The David Gikari led Committee also demanded an explanation on the Ksh.20 billion payments made to the power plant by Kenya Power when they have not done any supply.
In response RPL disputed the allegations saying the payments are meant to offset the investments put in by the investors in the company.
“That payment is not for the power that has not been supplied, it is for the investments that the owners have put in,” he added.
The firm stated that it receives payments from Kenya Power upon remission of levies from its customers.
The committee noted that the firm has an initial investment of Ksh.15 billion.
The parliament was told that through a public tender was fronted and the sponsors of the projects participated for the company to be procured by the KPLC.