End of Kenya Power monopoly as Ministry of Energy split roles
Kenya Power monopoly is coming to an end as the Ministry of Energy seeks to splits the supply roles to boost efficiency and cut costs.
According to recommendations by the Ministry of Energy, Kenya Power will only now distribute electricity to large commercial and industrial consumers.
Rural Electrification and Renewable Energy Corporation (Rerec) will take over the role of distributing electricity to household consumers as part of proposed reforms to boost efficiency and cut costs.
This will relieve KPLC of the pressure of juggling between serving industrialists and household customers according to a White Paper published by the ministry.
Industrialists account for more than half of Kenya Power sales compared to a third dispatched to Millions of households.
“Reconfigure KPLC and Rerec across consumer segments so that KPLC is positioned to serve large commercial and industrial consumers, while Rerec is positioned to serve the social mandate for household consumers,” the paper published by Energy Principal Secretary Gordon Kihalangwa recommends.
REREC is currently mandated to implement rural electrification projects and spearhead uptake of green energy, except geothermal.
Dr. Kihalangwa said the proposal is subject to public participation. “We’re seeking stakeholders’ view on this matter after which we will develop a work plan and timelines of implementation. It is a work in progress,” he said.
The paper recommends the secondment of KPLC staff to Rerec to help with the transition and an audit of KPLC distribution assets to smoothen the changeover.
The changes will have an impact on Kenya Power’s revenue base and cost structure in boosting efficiency and ending the Kenya Power monopoly in the energy sector.
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