People Daily | by John Otini
Kenya Power has embarked on negotiations to pair down standing charges paid to producers, which account for half of its electricity purchases.
According to the Office of the Auditor General’s review, the power utility firm spent Sh87 billion on electricity purchases for the year ended June 2020 of which Sh47 billion was capacity charges.
Capacity charges is the money Kenya Power pays producers whether it buys electricity or not. The fee is statutory to ensure that power producers can pay their bank loans…