Tribunal rules in favour of KenGen

September 18, 2008
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, Nairobi, September 18 – The Energy Tribunal has ruled that KenGen will continue to bill Kenya Power and Lighting Company (KPLC) on old rates, until an appeal lodged by the power generator is heard and determined.

In its ruling the tribunal directed KenGen to continue billing KPLC at the previous Interim Power Purchase Agreement rate of Sh2.36/Kwh pending the result of appeal.

The Tribunal has further ruled that KPLC will pay KenGen 95 percent of the billed amount and the balance of 5 percent will be preserved in an escrow account pending the result of the appeal.

According to a statement sent to Capital newsroom on Thursday, the orders are to be in place for the next two months to enable parties to resolve the dispute failure to which the full appeal will be heard by the Tribunal.

In the same ruling, ERC was compelled to provide to KenGen with all the assumptions, principals and models used in deriving the challenged charge rate within seven days.

The Tribunal further clarified that such change shall not have the effect of increasing the retail tariffs.

KenGen filed an appeal at the Energy Tribunal on July 29 seeking orders to set aside an ERC decision of June 30  prescribing charge rates to be used in computing KenGen revenues for the energy supplied to KPLC.

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