- Kenya’s EPRA has developed regulations to open the electricity market and allow private sector investment.
- The Director General at EPRA said that the investors will be at liberty to participate in power generation, transmission and distribution infrastructure business.
Kenya’s Energy and Petroleum Regulatory Authority (EPRA) has developed regulations to open the electricity market and allow private sector investors to participate in electricity distribution. This is expected to end decades of Kenya Power’s monopoly.
The draft Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024 will apply to the generation, importation, exportation, transmission, distribution and retail supply of electrical energy upon gazettement.
The regulations have been developed following a petition by Independent Power Producers (IPPs) to allow open access to power transmission and distribution.
Speaking during the public participation workshop in Nairobi, Daniel Kiptoo Bargoria, Director General at EPRA, said that the investors will be at liberty to participate in power generation, transmission and distribution infrastructure business, enabling them to supply bulk electricity to private retail vendors who will, in turn, oversee last-mile connectivity and billing to consumers.
He stated that the open access principle is a step forward in modernising our electricity market and promoting competition. The regulator will promote fair pricing by reviewing and approving proposed tariffs for any service to be charged by licensees.
This includes tariffs to be applied by generators, retailers, network service charges, wheeling charges, use of system charges, and ancillary services charges. The regulations further highlight how the structure and design of the electricity market will be developed and the different roles of different licensees in the sector.
They also establish the responsibilities of transmission and distribution licensees in maintaining their networks and providing non-discriminatory access to other licensees and eligible consumers.