The Energy and Petroleum Regulatory Authority (EPRA) has unveiled plans to introduce regulations that would enable electricity producers to directly sell power to all consumer groups, thus ending Kenya Power’s long-standing monopoly.
The forthcoming regulations will pave the way for power producers like KenGen to supply electricity directly to large consumers, including factories.
This development, aligned with the provisions of the Energy Act, 2019, aims to enhance the reliability of electricity supply amidst a growing number of large consumers turning to alternative power sources due to concerns over cost and the national grid’s unreliability.
Epra’s Director-General, Daniel Kiptoo, stated that the wheeling regulations, which will facilitate the opening up of the electricity distribution market, will be released for public participation within the next three months.
While this move may impact the revenues of Kenya Power, a state-owned electricity distributor, its primary objective is to foster a competitive market and bolster the availability of dependable power.
Kenya Power will be entitled to charge electricity generators for utilizing its transmission line to directly sell electricity. Notably, KenGen, responsible for supplying at least 60 percent of the electricity to Kenya Power annually, had previously announced plans to commence direct sales upon the enactment of the Energy Act.
To participate in the market, both KenGen and independent power producers will require a distribution license from Epra, should the wheeling regulations be adopted.