Why You Won’t ‘Divorce’ Kenya Power that Easily
Millions of current Kenya Power clients will remain connected to the electricity provider indefinitely, even as the government allows other companies to enter the electricity distribution market.
The 2024 Energy (Electricity Market, Bulk Supply, and Open Access) Regulations prohibit current customers from switching to new companies intending to join the electricity distribution sector.
CS Davis Chirchir recently published the regulations last month, marking a significant step by the State towards breaking Kenya Power’s long-standing monopoly in the energy sector.
The regulations stipulate that current Kenya Power clients are prohibited from engaging in agreements with alternative distributors. These clauses serve to safeguard the utility company from mass customer departures without explicitly stating so.
Furthermore, they have not specified a timeframe during which Kenya Power customers can switch providers.
“Subject to section 145(4) of the Act, a licensee may supply a consumer provided that the said consumer has no existing contract for the supply of electrical energy with any other licensee,” the draft regulations read.
“Subject to section 145(4) of the Act, a consumer shall choose his retail supplier provided that the said consumer shall not have two supply contracts for the same premises.”
The provisions indicate that more than 9.2 million residences and commercial establishments will remain reliant on the government-run electricity distributor for an extended period, as documented evidence reveals that customers experience approximately 115.73 hours of power outages each year.
It’s uncertain if Mr. Chirchir will amend the specific clauses and implement a transition period for current Kenya Power customers to choose the new distributors.
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There have been concerns that allowing other companies to enter the electricity distribution market could result in significant numbers of dissatisfied Kenya Power customers switching providers.
Frequent power disruptions, coupled with expensive utility bills, are driving a significant increase in the adoption of alternative energy sources like solar and biomass among both potential and current customers.
Major corporations like Kenya Breweries, Bamburi Cement, Carbacid Investments, Africa Logistics Properties, and Mombasa International Airport are among the prominent users of electricity, having implemented alternative energy solutions.
Affluent households are increasingly installing solar systems with the dual aim of reducing dependence on Kenya Power’s grid while also trimming down their electricity expenses.
According to the rules, Kenya Power and the Kenya Electricity Transmission Company (Ketraco) will permit other companies to utilize their transmission and distribution infrastructures for delivering electricity to customers, provided they pay the required wheeling fees.
As of June last year, Kenya Power had 9.2 million customers, but this period saw the lowest rate of customer growth with only 318,217 new additions.
Why You Won’t ‘Divorce’ Kenya Power that Easily