The Energy and Petroleum Regulatory Authority (EPRA) has developed regulations that will open up the electricity market and allow private sector investors to participate in the distribution of electricity.
The draft Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024 will upon gazettement apply to the generation, importation, exportation, transmission, distribution, and retail supply of electrical energy. The regulations have been developed following a petition by Independent Power Producers (IPPs) to allow open access to power transmission and distribution.
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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.
“The open access principle is a step forward in modernizing our electricity market and promoting competition. It introduces the wheeling of electricity which holds the potential to unlock new investment opportunities, enhance grid reliability, and ultimately deliver greater value to consumers who can enjoy lower power bills, less frequent outages, and more choices on electricity suppliers,”
he said.
The Authority 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, the different roles of different licensees in the sector will play as well as the responsibilities of transmission and distribution licensees in maintaining their networks and providing non-discriminatory access to other licensees and eligible consumers.
