KENYA – The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has introduced new regulations poised to reshape the nation’s electricity landscape.
Once gazetted, these regulations will grant independent power producers (IPPs) access to the electricity distribution market and permit private companies to import power from neighboring countries.
Outlined in the draft Energy (Electricity Market, Bulk Supply, and Open Access) Regulations 2024, these regulations mark a significant departure from the longstanding monopoly held by state-owned electricity utilities, namely Kenya Power and Kenya Electricity Transmission Company (KETRACO), in electricity supply.
This move, heralded by East Africa’s leading economy, aims to liberalize its electricity market substantially.
The regulator contends that increased competition, reduced electricity tariffs, and enhanced service delivery to consumers will be the direct outcomes of this market liberalization.
Under the current regime, IPPs are restricted to selling power exclusively to Kenya Power and KETRACO.
Moreover, Kenya Power has the sole authority to sign electricity import agreements with foreign producers, maintaining agreements with entities like Ethiopia Electric Power and the Uganda Electricity Transmission Company Limited.
Joseph Siror, CEO of Kenya Power, expressed his support for the proposed regulations, stating, “We welcome the new regulations on the electricity market, bulk supply, and open access as gazetted by the Energy and Petroleum Regulatory Authority (EPRA) last week.”
The reforms extend beyond mere access, as they also facilitate the wheeling of electricity through the distribution and transmission networks of KETRACO and Kenya Power, spanning 4,660 kilometers and 310,618 kilometers, respectively.
Furthermore, the regulations grant private energy companies the authority to construct, operate, and maintain electricity generation systems, as well as to build, operate, and maintain transmission infrastructure.
They also enable retail supply, empowering companies to sell, bill, and collect revenue.
EPRA’s oversight role includes reviewing and approving proposed tariffs for any services provided by licensees, with the regulator committed to ensuring fair pricing in the market.
Additionally, the regulations delineate the responsibilities of transmission and distribution licensees in maintaining their networks, enforcing non-discriminatory access by other licensees and eligible consumers to privately developed distribution and transmission networks.
For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on LinkedIn and subscribe to our YouTube channel.
