The Energy and Petroleum Regulatory Authority (EPRA) has proposed the Draft Energy Electric Power Undertaking Licensing Regulations, 2024 (hereinafter referred to as the “Draft Regulations”), which could open up the market for private firms to enter into the electricity distribution market. These Draft Regulations seek to promote prudent operational practices in the exportation, importation, generation, transmission, distribution, and retail supply of electrical energy throughout and outside Kenya.
These Draft Regulations provide for an approval and licensing process through which private firms will be eligible to engage in exportation, importation, or any other operational practices in the supply of electrical energy. EPRA is in charge of licensing these private firms, and there are different licensing categories, i.e., electricity generation license, electricity transmission license, electricity distribution license, electricity retail supply license, and electricity export/import license. EPRA has the authority to reject an application as well, and this rejection is required to be accompanied with reasons in writing as to why the application was unsuccessful when an applicant is being informed of their application status. The First Schedule outlines the form for the application for a license, and the Fourth Schedule sets out the different licensing fees. It is possible for private firms to have the freedom to carry out all listed operational activities in the different categories.
Once private firms are eligible to engage in operational activities pertaining to the supply of electrical energy, the license handed out by EPRA is responsible for the private firms’ planning, construction, operation, and maintenance of the respective licensed undertaking in compliance with the Draft Regulations, and other applicable standards, guidelines, and regulations. Private firms are allowed to carry out all categories of operational activities on the supply of electrical energy with the sole requirement, as aforementioned, being an application for licensing and payment of licensing fees.
The Draft Regulations provide for offenses and penalties which are set out in the Seventh Schedule. These offenses and penalties have been put in place to ensure compliance by private firms and to act as a means of deterrence. Additionally, the Draft Regulations are alive to the fact that there could be persons certified or licensed under the Electric Power (Electrical Installation Works) Rules, 2006 (now repealed), to carry out operational activities on the supply of electrical energy. It is important to note that this repealed regulation governed only electricians and electrical contractors. Should their license or certification expire, they are required to renew the same in accordance with the Draft Regulations. These Draft Regulations are after the publishing of the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024. The rationale behind this development is to bring an end to the monopoly that Kenya Power and Lighting Company has enjoyed for a great deal of time.
