Taxpayers financed national power distributor, Kenya Power, now on its deathbed is on the verge of losing its long held monopolized sector for close to a century as the Kenya Electricity Generating Company (Kengen) plans to begin direct sales of power.
Kengnen is waiting for completion and enforcement of regulations to pave way for full implementation of Energy Act 2019 that provides for the opening up of the sector.
In March this year, Kengen expressed interest in targeting flower firms and large industries in the proposed Naivasha Industrial Park as first customers for direct electricity sales.
However, Energy and Petroleum Regulatory Authority (EPRA) is yet to act on this proposal.
Pundits contend that a web of well-connected technical insider cartels working in collusion with external investor players have been frustrating full implementation of Energy Act 2019 that provides for the opening up of the sector.
Effectively, the well-choreographed managed process thwarts efforts by state-owned Kenya Electricity Generating Company (KenGen) from direct electricity sales to create competition and efficiency.
KenGen Managing Director Rebecca Miano said the firm is keen on selling power directly to the large power consumers as soon as the regulations are finalised.
“The Energy Act 2019 has provision for us to sell power directly especially to large consumers. What is pending are the regulations of how that would be undertaken and how the infrastructure would be based. We are certain that when the regulations are ready, that possibility will be there.” Miano said.
The firm’s target on the large customers which account for over half of Kenya Power’s electricity sales revenues may present a future challenge for Kenya Power now facing huge financial constraints.
President Uhuru Kenyatta signed the Energy Act in March 2019 into law but the regulations allowing other companies to apply for retail licences to sell electricity are yet to be set up.
The law under Section 140 compels Kenya Power to “provide non-discriminatory open access to its distribution system for use by any licensee, retailer or eligible consumer,” but is silent on what charges should be levied for such access.