Electricity

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.

The Kenya Electricity Grid Code is the primary technical document of the electricity supply industry (ESI), collating the majority of the technical regulations covering the generation, transmission, distribution and supply of electrical energy. Essentially the Grid Code is a consolidation of existing standards and practices in the Kenyan ESI and is intended to provide a transparent regulatory framework, in line with the principle of non-discriminatory access to the transmission and distribution systems, and is designed to provide technical specifications and procedures that complement the Act.

The Electric Power (Electrical Installation Work) Rules, 2006, published as Legal Notice No.115, Kenya Gazette Supplement No. 60 (Legislative Supplement No. 34) on September 6, 2006 sets out the requirements for the licensing of electricians and electrical contractors. The licensing is administered and approved by ERC’s Electricians’ and Electrical Contractors’ Licensing Panel set up in 2006.

The Energy (Complaints and Dispute Resolution) Regulations 2012, published as Legal Notice No. 42, Kenya Gazette Supplement No.49 (Legislative Supplement No. 15) on May 25, 2012 provides the means by which the Commission can help resolve complaints and disputes between a licensee and its customers where any party remains disatisfied after exhausting the licensee’s complaints resolution procedures.

The Energy (Electricity Licensing) Regulations, 2012 published as Legal Notice No. 44, Kenya Gazette Supplement No.49 (Legislative Supplement No. 15) on May 25, 2012 sets out requirements to be fulfilled by any person desiring a license or permit authorising him to carry out any undertaking in the generation, transmission, distribution or supply of electrical energy in Kenya.