Re: [kictanet] Vision 2030: ICT and Other Sectors Converged (Day 3)

12 Jan 2012

      Dear Harry,

I’m informed that an advert shall be put up early next week, Monday
16th January or Tuesday 17th January 2012 referring all interested
parties to the Energy Regulations Commission website for access to the
document. It  will however be important to share the document as
extensively as possible after that so that we can have as much input
as possible.

Thanks for starting the discussion of energy and in particular electricity off.

David

On 1/4/12, Harry Delano <harry@comtelsys.co.ke> wrote:
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Many thanks, David... and what a resource...!,
Ladies and gentlemen,  for those who have a keen  interest in matters
pertaining energy, here is  a huge resource we can interrogate. Especially,
where it has a  direct bearing as a driver for ICT growth and by extension
to the Vision 2030.
I will revert on key elements, but I noted this part:-
4.3 Future Economic Outlook: The Vision 2030
Until 2007, the Economic Recovery Strategy for wealth and employment
creation (ERS) established the foundation upon which to build a prosperous
Kenya and a robust economic growth. Following ERS, the Government launched
the Vision 2030 for outlining the broader macro-economic objectives and
strategy of the country up to the year 2030. The Vision 2030 was further
elaborated in the Medium Term Plan 2008-2012 (MTP) which aims at
consolidating the gains of the ERS. This is based on the implementation of a
low and stable inflation and interest rates, sustainable public debt,
competitive environment and refurbishing of infrastructures. The Vision 2030
describes the way Kenya will be transformed from a low income agrarian
economy into a newly industrialized middle income country, providing a high
quality of life to all its citizens. This goal is based on three pillars,
namely political stability, social development and economic growth. The
economic objectives supporting the Vision 2030 require an annual GDP growth
of at a least 10%, to be reached by the year 2015. For achieving this target
six key sectors of production have been identified: tourism, agriculture,
manufacturing, wholesale and retail trade, business processes out
outsourcing (BPO) and financial services. The Vision 2030 identifies energy
and electricity as a key element of Kenya’s sustained economic growth and
transformation.
From the statement of intent above we can interrogate 3 Key things in
relation with Vision2030:-
·         The economic objectives supporting the Vision 2030 require an
annual GDP growth of at a least 10%, to be reached by the year 2015.-
Clearly, gains made are being speedily reversed in this area, looking at the
current inflation and interest rates that have shot up. Again the Medium
Term Plan, highlights these 2 as key areas, including improving the business
environment, and infrastructure refurbishment..
·         Based on their analysis, the demand in the Energy sector
especially Electricity seems to draw a parallel to the shifting shadows in
GDP. Is this the only variable…? What about the pricing model, that might
also be driving away demand in form of investors choosing to invest
elsewhere ..?
·         We stepping into an election year, the cycle we’ve witnessed in
the past dictates a meltdown in gains made run-up to the election year, then
we again start from scratch. How do we make a clean break with the past,
consolidate gains especially for the MTP, and ensure we remain on track,
come elections or not..?
I believe Mr. Mugo, you can address this…?
Harry
Harry
-----Original Message-----
From: David Otwoma [mailto:otwomad@gmail.com]
Sent: Wednesday, January 04, 2012 3:20 PM
To: harry@comtelsys.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged (Day 3)
Sorry Harry,
Have been able to obtain the2nd draft but it is the 3rd draft National
Energy Policy document that will be availed for public comments/feedback
from 3rd to 11th February 2011. The venue of its first release (3rd
February) is the School of Monetary Studies.
As consolation attached please find the Least Cost Power Development Plan
2011-2031. Comments are welcome to feed into the next LCPDP
2013-2033 that will be out early next year. However, this is for electricity
sub sector only.
David
On 1/3/12, Harry Delano <harry@comtelsys.co.ke> wrote:
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Thanks David,
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Looking at the list of technocrats mentioned working on the National
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Energy Policy, it looks to me the policy drafting is restricted to the
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Energy sector technocrats. It doesn't look like we have any broad
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based representation that cuts across the entire Public sector
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spectrum, especially when it comes to dealing with such a crucial
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sector. I thought, this is the spirit and letter under the new
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constitution..? And is vision 2030 represented to ensure the policy is
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in tune with the vision - I suppose then we can seek to make input via
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their delegation on the team.
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Any possibility, that you got your hands on the draft document for our
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review...?
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More later, as we check out the resources you gave out..
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Many thanks, once again..
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Regards,
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Harry
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-----Original Message-----
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From: David Otwoma [mailto:otwomad@gmail.com]
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Sent: Monday, January 02, 2012 10:37 AM
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To: harry@comtelsys.co.ke
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Cc: KICTAnet ICT Policy Discussions
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Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged
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(Day 3)
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Harry,
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Thank you for your email with suggestion of Energy concept Paper.
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However, the Ministry of Energy in conjunction with all players in
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energy (ERC, GDC, KPLC, KenGen, NEPC, REA etc.) are working on an
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National Energy Policy. A second draft was produced in December 2011
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and will ask tomorrow if its allowed to circulate it and communicate
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accordingly. A number of my colleagues are on the drafting Committees
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(there is the Executive composed of PS, MoE; the MDs of ERC, GDC,
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KPLC, KenGen, NEPC, REA etc.), (then technocrats composed of lawyers,
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engineers, economists etc in MoE, ERC, GDC, KPLC, KenGen, NEPC, REA
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etc.). Last timetable I have possession of envisages the National
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Energy Policy being ready in early 2013. Usually such a Policy would
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become a Sessional Paper (as the one of 2004 that led to the Energy
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Act of 2006) once adopted by the Cabinet. Thereafter its
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recommendations (legislation setting and regulatory matters if enacted
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by Parliament become law) are the ones which may be for public
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consumption. But we now have a Constitution that stipulates power
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emanates from the people....not oozing from the Executive so....
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On Dr. Ndemo he said  ‘ Similarly, when the cost of energy goes up, we
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should move towards the sabstitutes even if it is a monopoly
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situation.  By now we should have built solar to such levels that we
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can force KPLC to be considerate in pricing.’ After he once advised me
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to watch ‘Field of Dreams’ I somehow managed to get a few of the team
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members of the Least Cost Power Development Plan on my side and since
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then I consider him a very progressive ally. Only last week an
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aquittance born, bred and from Scandinavia categorically informed me
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he is relocating permanently to our part of the world after more than
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40 years working in the north. His logic is that ‘we (Kenyans) are
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always fighting over a small cake when all around us there is flour,
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baking powder, sugar and energy to bake very many small cakes enough
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for all of us’. That reminded me of ‘Field of Dreams’.
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Every time you see a small, medium and big building (house) be it in
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uptown Runda or Mathare/Kibera informal settlement…anywhere dotted
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along the roads/paths we drive/walk….it is a potential solar centre.
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Only Ghana, at the close of 2011, in Africa is committed to
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implementing smart grid technology. This is a no brainer as China,
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Germany among other already use it. If you have solar on your building
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during the day it saves you energy (converted to electricity when you
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need it). Any excess may be offloaded to the grid who when they
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balance their books either request for extra payment of make you a
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cheque if you used less than you generated. If you have driven/walked
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along Parliament road at night the street lights there use solar. Why
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the City Council of Nairobi, Mombasa Municipal, Kisumu and all those
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other county councils cannot replicate this is a mystery to me! All
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schools, health centers, market places etc would also be having the
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same.Dr. Ndemo is spot on when he says ‘By now we should have built
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solar to such levels that we can force KPLC to be considerate in
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pricing.’ as what is lacking in our beloved Kenya is the will.  All
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those power pylons may be made to each house unlike the current
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situation where Kenyans 'beg' REA and/or KPLC to bring poles to them
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after paying upfront. We need the implementation of the smart grid
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technology locally…but remember Ghana is politically more mature than
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Kenya (they already know who will be the Presidential hopefuls when
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they hold their elections this year and additionally the two main
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parties are issue based not individual based) and that contributed to
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their economic growth being 14% (according to the ruling party but 8%
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according to the main opposing party).
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David
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On 1/2/12, Harry Delano <harry@comtelsys.co.ke> wrote:
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Ladies and Gentlemen,
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David's well articulated summary herein below on the going's on in
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the Energy Sector to date ( David I hope you do not mind working on
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an Energy concept Paper as requested
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by the Vision 2030), quite clearly indicates that we are in the woods
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as we have stated before.
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It is imperative that we realize that if we have to bring energy
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efficiencies to speed and develop & industrialize this economy,
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electricity has to lead from the front.
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It therefore follows that we must  streamline the main players – very
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critical. We cannot tolerate a situation where investors are in full
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flight citing the high cost of
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electricity to set up industry here at home, while neighboring
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countries can easily accommodate their needs.
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I suppose that we can note with satisfaction the efforts being
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undertaken in electricity generation so far, as earlier assessed.
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However we have to address  the
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distribution sector.
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For me, I would be keen on three areas:
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1.    The ‘goings-on’ at the  Distributor – KPLC.  If whether it is a
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parastatal, quasi-parastatal or its ownership remains a ‘mystery shroud’
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to
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date, we need to resolve this now. Does this interfere in any way
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with operational/pricing efficiencies filtering to the consumers?
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There needs to be transparency with a critical national utility
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Service provider such as this.. So can the right honorable gentlemen
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please clear the air on this?
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Grace.., possibly we could request Hon Rege for comment on this or
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get on board an active member of the Committee on Energy..?
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2.    Monopoly – We still insist  - Competition breeds competencies. Can
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we
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systematically begin working on breaking up the monopoly setup we
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currently have in place. What happened to the Energy Act 2006  that
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was to remove monopoly of Kenya Power as distributor …?
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3.    ERC – Am still yet to fully comprehend the makeup
structure/mandate.
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Can we make it work better – especially, on Electricity/Oil..?
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Bw PS, while we may fully agree that Solar energy is a viable
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alternative am afraid that by our standards here and now, we can only
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develop some small scale domestic consumption in the short term. This
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won’t
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really make any much dent in KPLC’s side. Meanwhile, we are
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discussing driving economy /industrial growth in the mid-term/long
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term for Vision 2030. Electricity has to carry out the job and drive
this.
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The general concern we all share right now is that, while we are
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actively scaling up efforts to generate more power to fuel our
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growth, we might just have to content with a bottleneck distribution,
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and this is currently only done by KPLC and so far, this state of
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affairs is quite unsatisfactory.
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Harry
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-----Original Message-----
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From: kictanet-bounces+harry=comtelsys.co.ke@lists.kictanet.or.ke
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[mailto:kictanet-bounces+harry=comtelsys.co.ke@lists.kictanet.or.ke]
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On Behalf Of David Otwoma
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Sent: Sunday, January 01, 2012 10:35 PM
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To: harry@comtelsys.co.ke
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Cc: KICTAnet ICT Policy Discussions
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Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged
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(Day
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3)
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Solomon,
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Having moved from Science & Technology (under Ministry of Higher
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Education, Science and Technology) to Nuclear Electricity Project
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(under Ministry of Energy) there are some perceptions that the PS of
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Information & Communication have that needs further interrogating.
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While working outside Kenya (1998 to 2006) I was privileged to visit
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many countries that operated nuclear power plants for electricity
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generation and will share experiences from a few.
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In France the energy giant is called EDF.see
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http://france.edf.com/france-45634.html It is like combining Kenya
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Power (distributors), KETRACO (transmitters), KenGen (generators) and
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a myriad of others e.g. Nuclear Electricity Project, Geothermal
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Development Co, Rural Electrification, etc. EDF owns power stations
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(58 nuclear power plants, coal and gas power generators, hydro power
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stations). EDF also owns the transmission lines (for both high and
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low
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voltages) and EDF is also a great marketer (sells electricity to over
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30 million customers in France and over 25 million outside France).
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Yet the government of France owns the lion share in EDF. What we call
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here Independent Power Producers are insignificant in France. In fact
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the regulators, who for example control the nuclear power
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infrastructure (called the French  Nuclear Safety Authority see
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http://www.french-nuclear-safety.fr/ ) has only 5 Commissioners (2
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selected by the President, 1 by the Prime Minister –the French have a
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system whereby the losing party produces the prime Minister – one by
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the equivalent of COTU, one by the professional in the nuclear
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industry). This is similar to USA where Nuclear Regulatory Commission
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also has 5 Commissioners, 3 chosen by the party in power and 2 by the
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losing party. In both France and USA nuclear is therefore a national
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matter and is not reduced to part politics.
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In USA by contrast what we call here IPP reign supreme. In nuclear
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for
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example some equivalents of our Tana and Arthi River Develoment
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Authority, Kerio Valley Authority I;e; Tennesse Valley Authority own
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both hydro and nuclear power plants. Municipalities too own power
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companies. So too do equivalents of IPPs here. Different entities
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also
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own transmission and distribution lines.
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What is in USA is more of an exception and not the rule. The
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rules/laws in USA for example would not tolerate a scenario where a
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serving people’s representative (in Senate or Congress) would be a
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wanted person for deals done when s/he was a Secretary (of State,
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Energy, Treasury etc.) and a former MD (President in USA energy firm)
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would be ‘respectable’ public figures after questions bordering on
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criminality arise.  Most of the world (Russia, China, Japan, South
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Korea, Iran, Egypt, etc.) the government irrespective of the party in
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power plays a very visible role in energy generation, transmission,
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distribution and marketing. In Egypt for example electricity is
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cheaper for manufacturers (hence fruits grown in Egypt by irrigation
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using electricity to pump water from the nile to orchards are cheaper
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in Kenya than our own locally produced fruits with rain fed
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agriculture!) and heavily subsidized for the population so as to
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ensure 98% electrification (Kenya we are just blow 20% while in
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Hungary upto year 1999 every human habitation it was the duty of the
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government to connect it with electricity that costs less than kshs.
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40 per month for the dweller then irrespective of consumption).
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Hansard has a report with the following in it.
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The Energy Act 2006 removes monopoly of Kenya Power as distributor.
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The Committee on Energy, Communications and Information was
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constituted on June 17th 2009 and its membership is as follows:-
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1. The Hon. (Eng.) James Rege, M.P. Chairman
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2. The Hon. Maina Kamau, M.P Vice Chairman
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3. The Hon. Danson Mwazo Mwakulegwa, M.P
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4. The Hon. Mohamed Hussein Ali, M.P
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5. The Hon. (Eng.) Nicholas Gumbo, M.P
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6. The Hon. Edwin O. Yinda, M.P
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7. The Hon. Emilio Kathuri, M.P
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8. The Hon. Ekwee Ethuro ,M.P
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9. The Hon. (Prof.) Phillip Kaloki, M.P
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10. The Hon. Cyprian Omolo, M.P
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The Committee is mandated to consider:-
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• Development, production, maintenance and regulation of Energy.
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• Communication.
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• Information.
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• Broadcasting, and
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• Information Communications Technology (ICT) development.
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The Committee executes its mandate in accordance with the provisions
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of Standing
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Order 198 (3), which is –
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a) to investigate, inquire into, and report on all matters relating
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to
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the mandate,
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management, activities, administration, operations and estimates of
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the assigned
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Ministries and Departments;
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b) to Study the programme and policy objectives on Ministries and
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Departments and
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the effectiveness of the implementation;
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c) to Study and review all legislation referred to it;
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d) to study, assess and analyze the relative success of the
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Ministries and
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departments as measured by the results obtained as compared with
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their stated
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objectives;
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e) to investigate and enquire into all matters relating to the
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assigned Ministries and
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departments as they may deem necessary, and as may be referred to
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them by the
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House or a Minister; and
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f) to make reports and recommendations to the House as often as
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possible,
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including recommendation of proposed legislation.
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Further, Standing Order No. 152 provide that:-
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(1) Upon being laid before the National Assembly, the Annual
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Estimates
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shall stand
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committed to the respective Departmental Committees according to
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their
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mandates.
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(2) Each Departmental Committee shall consider, discuss and review
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the Estimates
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committed to it under this standing order and submit its report
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thereon to the
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House within twenty one days after they were first laid before the House.
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Ministries assigned
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In executing its oversight mandate the Committee oversees the
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following Ministries:-
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i) Ministry of Energy
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ii) Ministry of Information and Communications.
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On Wednesday14th April, 2010 during the Afternoon Sitting, the Member
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of Parliament
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for Mumias Constituency, Hon. Benjamin Washiali asked the Ministry of
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Energy the
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following Question by Private Notice.
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a. What is the relationship between Kenya Power and Lighting Company
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(KPLC) and Rural Electrification Authority (REA)?
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b. How much money has the Ministry paid to KPLC through REA since its
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inception to date?
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c. Could the Minister provide details of the amount paid as dividends
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to the
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major shareholders of KPLC since its privatization?
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In addition to this Question, the Member for Yatta, Hon. Charles
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Kilonzo had on
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Tuesday 16th March, 2010 asked a Question on overcharging of
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electricity consumers
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by KPLC.
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The two questions elicited a lot of interest from Members who sought
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to know whether
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KPLC is a parastatal or a private company, its shareholders, whether
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it receives
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funding or financial support from the Government, its working
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relationship with REA,
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the amount of dividends it had paid to its shareholders over time and
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other issues
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surrounding its ownership and management. As a result, on 14th April,
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2010, the
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Speaker directed that the Departmental Committee on Energy,
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Communication and
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Information should take up this matter and file a report in the House.
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KPLC is a public company that was incorporated in 1922 as a private
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company and was
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later listed in the NSE in 1954. On diverse dates between 1960 and
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1975, the
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government bought KPLC shares totaling to 32,853,268 which represents
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40.4% of the
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voting shares of the Company. It is responsible for transmission,
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distribution and retail
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supply of electrical energy to end users. It purchases power in bulk
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from KenGen and
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the IPPs through bilateral contracts or Power Purchase Agreements
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(PPAs) approved
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by ERC.
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KPLC is responsible for ensuring that there is adequate line capacity
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to maintain supply
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and quality of electricity across the country. The interconnected
...
...
...
...
network of transmission
...
...
...
...
and distribution lines covers about 41,486 kilometers. It has more
...
...
...
...
than 1,500,000
...
...
...
...
customers who consumed over 5,432 Gigawatt hours of electricity in
...
...
the
...
...
...
...
financial year
...
...
...
...
2008/9. During the year, the maximum daily electricity peak demand
...
...
recorded was
...
...
...
...
1,072 MW.
...
...
...
...
...
...
...
...
The Energy Act and the Sessional Paper No. 4 of 2004 on Energy widely
...
...
...
...
liberalized the
...
...
...
...
energy sector in the country which was started in 1997 when KenGen
...
...
was
...
...
...
...
formed out of
...
...
...
...
KPLC. The Policy Paper among others established a single energy
...
...
regulator and
...
...
...
...
unbundled KPLC to form KETRACO, REA and GDC.
...
...
...
...
...
...
...
...
KPLC is the only licensed supplier, distributor and retailer of
...
...
...
...
electrical energy in Kenya
...
...
...
...
KPLC is a single buyer for all the power generated in Kenya and
...
...
...
...
injected into the interconnected grid for sale to the consumers. The
...
...
...
...
trading arrangements between KPLC and each of the generators are
...
...
...
...
governed by a long-term Power Purchase Agreement (PPA) approved by
...
...
...
...
ERC. Such PPAs comprise capacity charge, energy charge, fuel pass
...
...
...
...
through and inflation indexed clauses. The retail tariff structure
...
...
...
...
comprises of a fixed charge, energy charge and capacity charge.
...
...
...
...
...
...
...
...
On Wednesday 14th April, 2010, while answering a Question by Private
...
...
...
...
Notice by Hon.
...
...
...
...
B. Washiali, the Assistant Minister for Energy, Hon. M.M. Mohamud was
...
...
...
...
not clear on
...
...
...
...
whether KPLC is a parastatal or not. At one point he informed the
...
...
...
...
House that KPLC was
...
...
...
...
a private company with the Government as one of the shareholders. At
...
...
...
...
another point,
...
...
...
...
he informed the House that ‘…KPLC is a Government parastatal, but a
...
...
different
...
...
...
...
parastatal from other parastatals. It is in a different category with
...
...
...
...
other parastatals. There are parastatals which are not listed at the
...
...
...
...
NSE. So this is different to that extent.’ The Government needs to be
...
...
...
...
clear on whether KPLC is a Government Parastatal or a private company.
...
...
...
...
...
...
...
...
The Committee notes the importance of KPLC to service delivery in the
...
...
...
...
country and that
...
...
...
...
the achievement of Vision 2030 depends on the success of the
...
...
...
...
electricity sector. It is
...
...
...
...
evident that the Government largely supports KPLC through guaranteed
...
...
...
...
loans and profit
...
...
...
...
plough-backs and also appoints a majority of directors to the
...
...
company’s Board of
...
...
...
...
Directors. Further, the Company’s vehicles have blue registration
...
...
...
...
number plates, a
...
...
...
...
preserve of parastatals contributing to the uncertainty as to whether
...
...
KPLC is a
...
...
...
...
parastatal or a private company. Due to the importance of the
...
...
...
...
electricity sector in the
...
...
...
...
country and the regular support offered to KPLC, the Government
...
...
should not allow
...
...
...
...
KPLC to be in the control of business people who are motivated by
...
...
profits at the
...
...
...
...
expense of the citizens.
...
...
...
...
...
...
...
...
KPLC could be termed a State Corporation if it was ‘wholly owned or
...
...
...
...
controlled by the
...
...
...
...
government or by a state corporation’ in accordance with the
...
...
...
...
definition proffered in the
...
...
...
...
State Corporations Act. Following the disposal of shares by NSSF, the
...
...
...
...
Company does
...
...
...
...
not meet the requirements stipulated for it to qualify as a state
...
...
...
...
corporation. Furthermore,
...
...
...
...
KPLC has not submitted fully to the provisions of the Public Audit
...
...
...
...
Act, by having its
...
...
...
...
accounts audited by the Controller and Auditor General and submitted
...
...
...
...
to the National
...
...
...
...
Assembly for examination by the Public Investments Committee (PIC).
...
...
...
...
...
...
...
...
he Controller and Auditor General last submitted audited accounts for
...
...
...
...
KPLC for the
...
...
...
...
year 2001/2002. PIC queried the non submission of KPLC accounts for
...
...
...
...
the subsequent
...
...
...
...
years in its 12th Report of 2004. Thereafter, accounts for the
...
...
...
...
financial year 2007/2008
...
...
...
...
were tabled in December 2009. That notwithstanding, in 2004 PIC
...
...
examined the
...
...
...
...
following non accounting issues:-
...
...
...
...
...
...
...
...
i) KPLC’s pension’s scheme,
...
...
...
...
ii) Contracts between KPLC and IPPs,
...
...
...
...
iii) The general financial status of the company and
...
...
...
...
iv) Supply of treated poles during the Financial year 2004/2005 (13th
...
...
Report).
...
...
...
...
...
...
...
...
The Committee therefore recommends that:-
...
...
...
...
...
...
...
...
i) The Government proceeds with the conversion of some of its 7.85%
...
...
redeemable
...
...
...
...
non-cumulative preference shares (87.12 million shares which Treasury
...
...
has
...
...
...
...
approved) into ordinary shares at a ratio of 1:1 and retains the
...
...
...
...
ordinary shares so
...
...
...
...
as to raise its stake in KPLC to 75% thus qualifying the company as a
...
...
...
...
parastatal.
...
...
...
...
...
...
...
...
The Government’s shareholding in KPLC be determined by the shares
...
...
held in the
...
...
...
...
name of the Permanent Secretary, Treasury and not other state
...
...
agencies who
...
...
...
...
might later on dispose their shares without approval from the Treasury.
...
...
...
...
...
...
...
...
Before unbundling of electricity generation from transmission and
...
...
...
...
distribution in the
...
...
...
...
1990s, there were 5 major players in the power sector, namely Kenya
...
...
...
...
Power Company
...
...
...
...
(KPC), Tana River Development Company (TRDC), Tana and Athi Rivers
...
...
...
...
Development Authority (TARDA), Kerio Valley Development Authority
...
...
(KVDA) and
...
...
...
...
KPLC. The initial unbundling comprised first merging TRDC and KPC in
...
...
1996 to KPC
...
...
...
...
which changed its name to KenGen in 1998. The second step comprised
...
...
...
...
consolidating
...
...
...
...
all the power generation assets, owned by the five (5) parastatals
...
...
...
...
under KenGen and
...
...
...
...
the transmission and distribution assets under KPLC. By October 1999,
...
...
all power
...
...
...
...
generation assets from KPLC, TRDC, KPC, TARDA and KVDA were
...
...
transferred to
...
...
...
...
KenGen at ‘depreciated replacement costs’. Similarly, transmission
...
...
and
...
...
...
...
distribution
...
...
...
...
assets owned by other entities were transferred to KPLC at
...
...
depreciated
...
...
...
...
replacement
...
...
...
...
costs.
...
...
...
...
...
...
...
...
The Committee recommends that, like the previous unbundling:-
...
...
...
...
...
...
...
...
i) All assets under the REP since 1973 should be tracked and taken
...
...
over and
...
...
...
...
reflected in the books of REA. Currently such assets are owned by the
...
...
Government
...
...
...
...
but under KPLC.
...
...
...
...
ii) All transmission assets should be tracked and taken over and
...
...
...
...
reflected in the books
...
...
...
...
of KETRACO. Currently such assets acquired before the formation of
...
...
KETRACO in
...
...
...
...
2008, are owned by KPLC while KETRACO will own new assets that it
...
...
will develop.
...
...
...
...
KPLC should surrender all transmission assets to KETRACO.
...
...
...
...
iii) All assets under geothermal exploration and extraction held by
...
...
...
...
KenGen (including
...
...
...
...
Olkaria I & II) should be taken over by GDC to avoid the Government
...
...
competing
...
...
...
...
with itself.
...
...
...
...
...
...
...
...
The Committee notes that ERC has failed to deliver on its mandate
...
...
...
...
especially with
...
...
...
...
regards to protecting energy consumers. This is reflected in the high
...
...
...
...
costs of electricity
...
...
...
...
in Kenya as compared to its neighbours which is a key factor in
...
...
...
...
driving investors out of
...
...
...
...
the country. Further, the high electricity costs cause most Kenyans
...
...
to resort to
...
...
...
...
traditional sources of energy such as charcoal and firewood, further
...
...
...
...
depleting our
...
...
...
...
environment. While unbundling the electricity sub-sector, the
...
...
...
...
Government intended to
...
...
...
...
make the electricity clean, quality and affordable which is evidently
...
...
...
...
not the case.
...
...
...
...
...
...
...
...
The Committee also notes with concern that under the Energy Act, ERC
...
...
...
...
is expected to
...
...
...
...
ensure that the industry players such as KenGen remain profitable and
...
...
...
...
viable which
...
...
...
...
impacts negatively on the consumers despite the PPAs guaranteeing
...
...
reasonable
...
...
...
...
profits. The Committee therefore recommends that the Energy Act be
...
...
amended and
...
...
...
...
that ERC puts in place feedback mechanisms to ensure that demand is
...
...
met with
...
...
...
...
reliable, cost effective and high quality energy services in an
...
...
...
...
environmentally friendly
...
...
...
...
manner.
...
...
...
...
...
...
...
...
The Committee further recommends that the Government increase its
...
...
subsidies for
...
...
...
...
the transmission and operation costs so that they are not reflected
...
...
in
...
...
...
...
the tariffs and the
...
...
...
...
consumer bills.
...
...
...
...
...
...
...
...
The Committee notes that the public is misinformed on the operations
...
...
...
...
of the various
...
...
...
...
players in the power sector and recommends that the Government carry
...
...
out public
...
...
...
...
education to inform the public on the various initiatives and power
...
...
...
...
players which will
...
...
...
...
promote transparency in the energy sector. Further, the price
...
...
...
...
variations reflected on
...
...
...
...
the consumer bills should be demystified to the public.
...
...
...
...
...
...
...
...
In conclusion what PS, Ministry of Information and Communications
...
...
...
...
raises i.e. inviting Hon Rege who is Chairman of Energy and
...
...
...
...
Information & Communication to shed light on how the Committees
...
...
...
...
recommendations have been taken up by the relevant institutions.
...
...
...
...
...
...
...
...
In conclusion and as noted in some earlier debate, energy is an
...
...
...
...
enabler and the current situation is not sustainable i.e. Kenya is
...
...
...
...
dominated by petroleum and electricity which are the prime movers of
...
...
...
...
the modern sector economy, while wood fuel provides energy needs of
...
...
...
...
the traditional sector including rural communities and urban poor. At
...
...
...
...
the national level, wood fuel and other biomass account for about 68%
...
...
...
...
of the total primary energy consumption followed by petroleum at 22%,
...
...
...
...
electricity at 9% and others including coal at about less than 1%.
...
...
...
...
This is not sustainable as electricity providing less than 10% of
...
...
...
...
energy yet we plan to industrialize! The October 2011 National Energy
...
...
...
...
Conference revealed that even the 20+% oli bill almost 10% goes to
...
...
...
...
burn in diesel generators to produce the expensive fuel levy
...
...
reflected
...
...
...
...
in electricity bills. While making Dr. Ndemo play Presidential
...
...
...
...
aspirant it was concluded that while electricity has the least Cost
...
...
...
...
Power Development Plan team doing 20 year rolling plans no such
...
...
...
...
activity is in the oil sector! Is that by design or its a long term
...
...
...
...
oversight? Wood (read biomass) never got any country on earth
...
...
...
...
industrialized and hence government cannot (should not) wait for
...
...
...
...
Independent Power Producers to invest in energy, as the easiest
...
...
return
...
...
...
...
(short term of course) is in charcoal burning, followed by burning
...
...
oil
...
...
...
...
(again returns occur in less than a Parliamentary term) not putting
...
...
up
...
...
...
...
a nuclear power plant.
...
...
...
...
...
...
...
...
Best wishes for 2012 to all.
...
...
...
...
...
...
...
...
David
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
On 12/31/11, Solomon Mbũrũ Kamau <solo.mburu@gmail.com> wrote:
...
...
...
...
...
Dr. Ndemo,
...
...
...
...
...
With due respect, I find your comment on listers' popints to Mr.
...
...
...
Mugo
...
...
...
...
...
not satisfying (to your expectations). However, in the foregoing, I
...
...
...
...
...
understand that most of us were not privy to the conception of the
...
...
...
...
...
Vision 2030, and perhaps, we were raisin issues per what we see
...
...
...
...
...
happening, for example on energy. Kenya Power as a monopoly enjoys
...
...
...
...
...
100% benefit in the power sector, yet in the ccompetitive and
...
...
...
...
...
liberalized world, competition thrives when the market is not capped
...
...
...
...
...
on one firm. Kenya Power, while being good in blackouts, stills
...
...
...
enjoys
...
...
...
...
...
support from the government, yet as we speak about achieving the
...
...
...
...
...
Vision, energy is the most important aspect driving us towards the
...
...
...
...
...
realization of the flashship projects pointed out.
...
...
...
...
...
Generally, without education, there is nothing like achieving
...
...
...
...
...
development in it's full scale.
...
...
...
...
...
...
...
...
...
...
In my view, I think the contributors interrogating Mr. Mugo did
...
...
...
their
...
...
...
...
...
level best to make the Vision clear in a layman language, more
...
...
...
...
...
sepcifically, Mr. Mugo himself.
...
...
...
...
...
...
...
...
...
...
Regards,
...
...
...
...
...
...
...
...
...
...
Solomon
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
On 31/12/2011, bitange@jambo.co.ke <bitange@jambo.co.ke> wrote:
...
...
...
...
...
...
Eric,
...
...
...
...
...
...
I am not done with your questions yet.  On Government blocking
...
...
...
...
investment
...
...
...
...
...
...
in
...
...
...
...
...
...
energy.  This is what we are trying to address: The role of
...
...
...
...
government in
...
...
...
...
...
...
enterprise.  If you go deeper into Schumpeter's theory, you will
...
...
...
...
find that
...
...
...
...
...
...
no government can block an idea or innovation whose time has come.
...
...
...
...
...
...
...
...
...
...
...
...
When Graham Bell invented the telephone, the British Post dismissed
...
...
...
...
the
...
...
...
...
...
...
idea
...
...
...
...
...
...
saying there were enough messengers around.  With the invention of
...
...
...
...
mobile
...
...
...
...
...
...
telephony, the land line is undergoing the same fate it brought to
...
...
...
...
...
...
communication early in the 20th century.  This is what is called
...
...
...
...
"creative
...
...
...
...
...
...
destruction".
...
...
...
...
...
...
...
...
...
...
...
...
We must understand this theory if indeed we want to survive in the
...
...
...
...
days to
...
...
...
...
...
...
come.  In my recent visit to China, I saw what the future would be
like.
...
...
...
...
...
...
A
...
...
...
...
...
...
city the size of Nairobi is using both solar and wind energy to
...
...
...
...
light up
...
...
...
...
...
...
street lights.  This innovation even in Kenya does not require
...
...
...
...
government
...
...
...
...
...
...
approval.  Further we have enriched the Arab world far too long
...
...
...
...
when we
...
...
...
...
...
...
use
...
...
...
...
...
...
parrafin to power our rudimentally oil lamps.  Instead we should by
...
...
...
...
now
...
...
...
...
...
...
have
...
...
...
...
...
...
provided a simple battery, a solar panel and a micro wind vane to
...
...
...
...
every
...
...
...
...
...
...
household for energy supply.  This will save us billions of dollars
...
...
...
...
that
...
...
...
...
...
...
we
...
...
...
...
...
...
can invest in preventive medical care.
...
...
...
...
...
...
...
...
...
...
...
...
Your problem is that you want to replicate what you have seen in
...
...
...
...
advanced
...
...
...
...
...
...
economies.  Your approach would fail.  You must first create the
...
...
...
...
market
...
...
...
...
...
...
through simple understandable solutions.  The demands for energy
...
...
...
...
will then
...
...
...
...
...
...
be incremental such that even if you were to build 10,000 MW you
...
...
...
...
have a
...
...
...
...
...
...
ready market.
...
...
...
...
...
...
...
...
...
...
...
...
On colonialism;  This is non sense in my view.  Those who colonized
...
...
...
...
us are
...
...
...
...
...
...
dead and most of those who were colonized are dead too.  We must
...
...
...
...
not
...
...
...
...
...
...
forget
...
...
...
...
...
...
that this happened but our focus should be to build confidence in
...
...
...
...
...
...
ourselves
...
...
...
...
...
...
to face the world.  Take China for example, Japan dominated them
...
...
...
...
but they
...
...
...
...
...
...
have not spent their lives grumbling about the past.  They have
...
...
...
...
faced up
...
...
...
...
...
...
to
...
...
...
...
...
...
Japan and today they compete on an equal footing.
...
...
...
...
...
...
...
...
...
...
...
...
Although parts of Africa are still under the French colony, you
...
...
...
...
must be
...
...
...
...
...
...
grateful that the British colonized us.  The British were only
...
...
...
...
interested
...
...
...
...
...
...
in
...
...
...
...
...
...
domination and material wealth.  The French's integration approach
...
...
...
...
still
...
...
...
...
...
...
has
...
...
...
...
...
...
implications on their colonies.  Indeed as I write there are
...
...
...
...
Africans in
...
...
...
...
...
...
Africa who consider themselves French.  There are African states
...
...
...
...
that
...
...
...
...
...
...
still
...
...
...
...
...
...
pay French tax.  Mineral resources on African continent still
...
...
...
...
belong to
...
...
...
...
...
...
France.
...
...
...
...
...
...
...
...
...
...
...
...
I have nothing against the French.  If our Francophone brothers
...
...
...
...
feel
...
...
...
...
...
...
comfortable this way, let it be.  The best we can do is to face up
...
...
...
...
to our
...
...
...
...
...
...
colonial power, leverage on the Common Wealth
...
...
...
...
...
...
Association to build a new alliance that benefits all of us.
...
...
...
...
Together we
...
...
...
...
...
...
have more voting power and ability to lead the agenda.
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
Regards.
...
...
...
...
...
...
...
...
...
...
...
...
Ndemo.
...
...
...
...
...
...
...
...
...
...
...
...
Sent from my BlackBerry®
...
...
...
...
...
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-----Original Message-----
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From: "Eric M.K Osiakwan" <emko@internetresearch.com.gh>
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Sender: kictanet-bounces+bitange=jambo.co.ke@lists.kictanet.or.keDate:
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Fri,
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30 Dec 2011 15:51:57
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To: <bitange@jambo.co.ke>
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Cc: KICTAnet ICT Policy Discussions<kictanet@lists.kictanet.or.ke>
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Subject: [kictanet]  Vision 2030: ICT and Other Sectors Converged
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(Day
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3)
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_______________________________________________
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kictanet mailing list
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kictanet@lists.kictanet.or.ke
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http://lists.kictanet.or.ke/mailman/listinfo/kictanet
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http://lists.kictanet.or.ke/mailman/options/kictanet/bitange%40jamb
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o.co.ke
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
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platform
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for
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people and institutions interested and involved in ICT policy and
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regulation. The network aims to act as a catalyst for reform in the
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ICT
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sector in support of the national aim of ICT enabled growth and
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development.
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KICTANetiquette : Adhere to the same standards of acceptable
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behaviors
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online that you follow in real life: respect people's times and
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bandwidth,
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share knowledge, don't flame or abuse or personalize, respect
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privacy, do
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not spam, do not market your wares or qualifications.
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_______________________________________________
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kictanet mailing list
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kictanet@lists.kictanet.or.ke
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mail.com
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
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platform
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for
...
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...
...
...
...
people and institutions interested and involved in ICT policy and
...
...
...
...
...
...
regulation. The network aims to act as a catalyst for reform in the
...
...
...
...
ICT
...
...
...
...
...
...
sector in support of the national aim of ICT enabled growth and
...
...
...
...
...
...
development.
...
...
...
...
...
...
...
...
...
...
...
...
KICTANetiquette : Adhere to the same standards of acceptable
...
...
...
...
behaviors
...
...
...
...
...
...
online that you follow in real life: respect people's times and
...
...
...
...
bandwidth,
...
...
...
...
...
...
share knowledge, don't flame or abuse or personalize, respect
...
...
...
...
privacy, do
...
...
...
...
...
...
not spam, do not market your wares or qualifications.
...
...
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_______________________________________________
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kictanet mailing list
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kictanet@lists.kictanet.or.ke
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.com
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
...
...
...
platform for
...
...
...
...
...
people and institutions interested and involved in ICT policy and
...
...
...
...
...
regulation. The network aims to act as a catalyst for reform in the
...
...
...
ICT
...
...
...
...
...
sector in support of the national aim of ICT enabled growth and
...
...
...
development.
...
...
...
...
...
...
...
...
...
...
KICTANetiquette : Adhere to the same standards of acceptable
...
...
...
behaviors
...
...
...
...
...
online that you follow in real life: respect people's times and
...
...
...
bandwidth,
...
...
...
...
...
share knowledge, don't flame or abuse or personalize, respect
...
...
...
privacy, do
...
...
...
...
...
not spam, do not market your wares or qualifications.
...
...
...
...
...
...
...
...
...
...
...
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_______________________________________________
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kictanet mailing list
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kictanet@lists.kictanet.or.ke
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http://lists.kictanet.or.ke/mailman/options/kictanet/harry%40comtelsy
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s.co.ke
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The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
...
...
platform for people and institutions interested and involved in ICT
...
...
policy and regulation. The network aims to act as a catalyst for
...
...
reform in the ICT sector in support of the national aim of ICT
...
...
enabled growth and development.
...
...
...
...
...
...
...
...
KICTANetiquette : Adhere to the same standards of acceptable
...
...
behaviors online that you follow in real life: respect people's times
...
...
and bandwidth, share knowledge, don't flame or abuse or personalize,
...
...
respect privacy, do not spam, do not market your wares or qualifications.
...
...
...
...
...
...