Monopoly–Government has moved with speed to put to an end the long Kenya Power distribution monopoly in the market.
In the Gazette Notice dated March 2, 20224, the Ministry, under the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024, allows Independent Power Producers IPPs to share supply of power around the country.
This, therefore, brings to an end the long monopoly of the main power distributor – the Kenya Power and Lighting KPL.
The plan to decentralise power supply having been informed by the fact that the service was a strict preserve of the KPL.
One notable condition highlighted in the new power distribution framework details that, a company or a person licensed to retail electricity will supply this utility provided that the said consumer has no existing contract for the supply of electrical energy with any other licensee.
“A consumer shall choose his retail supplier provided that the said consumer shall not have two supply contracts for the same premises,” partly reads the regulations.
The Gazette Notice also explains that the electricity market should consist of a wholesale market and a retail market where the retail market gets the product from the latter before the utility reaches to the final client.
“The wholesale market shall comprise of generation licensees and other licensees who will trade through the intermediary of an operator, who shall be designated by the Authority”.
IPPs who will get a license to retail electricity will get permission to supply in one or more distinct geographical areas or particular premises.
And as it has been before, the Energy and Petroleum Regulatory Authority EPRA will have the power to set prices of the electricity being retailed.
