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Overview

Electricity generation in Kenya is liberalized with several licensed electric power producers, distributors and transmission utilities. The net electrical energy from the power generating plants is bought by the Kenya Power and Lighting Company (KPLC) through power purchase agreements (PPAs) approved by the Authority.

The energy is then conveyed over transmission systems owned by KPLC or the Kenya Electricity Transmission Company (Ketraco), both of whom are licensed by the Authority to provide transmission services.

Finally, KPLC carries out distribution and retail supply of the electrical energy to customers in accordance with licenses and permits issued to it by the Authority. EPRA also approves the retail tariffs charged for the supply.

 

Role of EPRA in the Electricity subsector

The Authority is responsible for economic and technical regulation of the electric power sub-sector and for this purpose, it has powers to:

 - Issue, renew, modify, suspend or revoke licenses and permits;

 - Propose to the Cabinet Secretary regulations which may be necessary or expedient for the sub-sector;

 - Formulate, enforce and review environmental, health, safety and quality standards for the sub-sector, in coordination with other statutory authorities;

 - Enforce and review regulations, codes and standards for the sub-sector;

 - Ensure compliance with conditions of licenses or permits;

 - Set, review and adjust electric power tariffs and tariff structures, and investigate tariff charges, whether or not a specific application has been made for a tariff adjustment;

 - Approve electric power purchase and network service contracts for all persons engaging in electric power undertakings;

 - Examine and approve meters used or intended to be used for ascertaining the quantity of electrical energy;

 - License electricians and register electrical contractors;

 - Investigate complaints or disputes between parties with grievances over any matter required to be regulated under the Act;

 - Prescribe the requirements for accreditation of persons with appropriate skills to check accuracy of energy meters installed in residential,       commercial or industrial premises;

 - Impose sanctions and penalties on persons who are in breach of any of the provisions of the Act or any regulations made thereunder.