Regulation of electricity utilities – sales of power

Approval to sell power

What authorisations are required for the sale of power to customers and which authorities grant such approvals?

Pursuant to the requirements of the Licensing Regulations and the Energy Act, the ERC grants licences to entities that wish to supply electricity to consumers.

Power sales tariffs

Is there any tariff or other regulation regarding power sales?

KPLC proposes retail tariffs that are then reviewed and approved by the ERC. If approved, the ERC publishes the approved rates in the Kenya Gazette specifying the date on which the rates are to take effect. The ERC is required by the Energy Act to set the rates in a fair, transparent and predictable manner consistent with government policy and sensitive to stakeholder interests.

Rates for wholesale of power

Who determines the rates for sales of wholesale power and what standard does that entity apply?

KPLC proposes retail tariffs that are then reviewed and approved by the ERC. If approved, the ERC publishes in the Kenya Gazette the approved rates as the Schedule of Tariffs for the Supply of Electrical Energy, which provides the different rates at which electrical energy may be supplied to consumers, including wholesale consumers, by KPLC. The ERC is mandated to regulate the energy sector in a fair, transparent and predictable manner consistent with government policy and sensitive to stakeholder interests.

Public service obligations

To what extent are electricity utilities that sell power subject to public service obligations?

Not applicable in Kenya, given that there is only one national utility, KPLC, which itself is a state corporation.