Business News
KPLC and Mumias agree on energy deal
Dr Evans Kidero(right), managing director, Mumias Sugar, addresses investors during a breakfast meeting on Monday at Laico Regency Hotel Nairobi. Also in the picture is the company’s chief finance officer, Mr Peter Kebati. Photo/WILLIAM OERI
Posted Monday, February 1 2010 at 18:00
Mumias Sugar Company on Monday said it had resumed selling 26 megwatts of electricity to the Kenya Power & Lighting Company, after the power distributor backed down on its decision to cut purchase.
Besides, KPLC agreed to increase the feed-in tariff it pays Mumias Sugar Company by 33 per cent, Mumias managing director Evans Kidero said Monday.
“KPLC has not only agreed to take the whole 26MW but has also agreed to increase the price it will pay us from six US cents (Sh4.50) per kilowatt/hour to eight US cents (Sh6) per kilowatt/hour,” Dr Kidero told an investors briefing at Laico Regency Hotel, Nairobi.
There has been a muted dispute between the two companies, following KPLC’s decision to reduce the amount of power it buys from Mumias from the agreed 26MW to 10MW, which the sugar miller said was against the power purchase agreement, compelling KPLC to buy all 26MW.
KPLC had defended itself that at night when demand goes down in Western Kenya power generation had to be lowered to achieve acceptable levels of voltages in the region.
The company’s cogeneration plant produces 38MW but sells 26MW KPLC. It makes electricity by burning bagasse, the fibrous residue of crushed sugarcane.
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