The Star ­ Friday
Date: 03.06.2016
Page 20
Article size: 188 cm2
ColumnCM: 41.77
AVE: 73528.88
Kenya Power managing director Ben Chumo and director of Kipeto Energy Kenneth Namunje exchange a power
purchase agreement yesterday /joanwairimu
Second power supplier
not needed — Chumo
"We are really not a monopoly; this is a value chain although
we own 95 per cent of the transmission systems," MD says
JOANWAIRIMU
(a)JoanNjoki
There is no room for a second power
distributor because Kenya's installed
power capacity is still little, Kenya
Power CEO Ben Chumo claims.
The Energy Bill 2015 which is now
at the committee stage provides for
licensing of more electricity dis­
tributors and retailers, and is likely
to end Kenya Power's monopoly if
passed. Last month, Treasury CS
Henry Rotich said the government
will fast­track plans to open up elec­
tricity supply to private firms.
The plan, if implemented, will al­
low consumers to choose their pre­
ferred electricity currently only run
by Kenya Power, which is 51 per cent
owned by the state.
Chumo said Kenya's installed
power capacity, which has increased
from 1,600 megawatts in 2013 to
2,341MW currently, is too small to
warrant another distributor. He add­
ed that an additional distributor will
also disadvantage electricity users,
as opening up the market could in­
crease the cost of power.
"We are really not a monopoly;
this is a value chain although we own
95 per cent of the transmission sys­
tems. Ketraco is now building new
ones, we are sharing that responsi­
bility with them," he said.
Chumo said the space can only
accommodate other players after the
government's 5000MW programme
is completed. "The incentive also,
for an economy introducing anoth­
er player, is when the existing player
does not do very well," he said. "Ken­
ya Power is doing very well already. It
will be a short while before you real­
ise there are no more outages at all."
He said the utility firm has had
immense support in terms of in­
vestments, in recent years, to help it
improve the network and infrastruc­
ture. Rural Electrification Authority,
he said, also connects households to
electricity with its low voltage net­
work further disputing that Kenya
Power is a monopoly.
He was speaking after signing a
20­year power purchase agreement
with Kipeto Energy for alOOMW
wind project. The project is expected
to be completed in the first quarter
of2018.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya