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Farmers harvest sugarcane in Kisumu. It’s time for farmers to shift to other crops that bring in more money. PHOTO | FILE
By GEORGE ODERA-OUTA News
By SIMON CIURI
Troubled miller Mumias Sugar has resorted to the use of diesel power generators as the row between the company and Kenya Power over a Sh1 billion debt claim continues.
Mumias’ marketing and communications director Margaret Makhungu on Friday told the Business Daily that the sugar miller’s row regarding a power purchase agreement with Kenya Power was unresolved.
Mumias sells power to Kenya Power from its
co-generation plant which is run by baggase, but it also buys
electricity from the energy company to bridge deficits. “Currently we
are using the generator in our operations,” said Ms Makhungu.
The sugar miller has however refuted claims by
Kenya Power that it owes it Sh953.5 million relating to ‘‘back-feed’’
energy consumption that had not been billed.
On the other hand, Mumias, which supplies part of
the 36 megawatts it generates to the electricity distributor, says the
utility firm is yet to settle its account as per the terms of the power
purchase agreement signed between the two.
It has also complained that Kenya Power bills it
under the domestic tariff, which is often higher than the industrial
one, an allegation that Kenya Power denies.
“Mumias owes Kenya Power more than what they are
claiming from us. They (Mumias) have not been consistent in producing
power as per the agreement and for this, it has even attracted
penalties,” reported Daily Nation quoting Migwi Theuri, Kenya Power’s spokesman.
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