Existing Kenya Power customers to remain tied to the company despite end of monopoly
3 min read
Millions of existing Kenya Power customers will be tied to the power utility indefinitely despite plan by the State to end monopoly
Millions of existing Kenya Power customers will be tied to the power utility indefinitely despite plan by the State to end monopoly.
According to the Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024, current Kenya Power customers will not allowed to switch to other companies that plan to enter the energy distribution market.
The rules were gazetted last month by Energy Cabinet Secretary Davis Chirchir, as the State works to break the power distributor’s decades-long monopoly.
Under provisions that tacitly shield the utility company against widespread customer desertion, the regulations stipulate that current Kenya Power customers will not be permitted to engage into agreements with rival distributors.
“Subject to section 145(4) of the Act, a licensee may supply a consumer provided that the said consumer has no existing contract for supply of electrical energy with any other licensee,” the draft regulations read in part.
“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 clauses mean that the over 9.2 million homes and businesses will be stuck with the State-owned power distributor for years, with official records showing that customers are staying in the dark for about 115.73 hours annually.
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It remains unclear whether Mr Chirchir will make changes to the particular clauses and introduce a transition period for existing Kenya Power customers to opt for the new distributors.
There have been fears that opening up electricity distribution to other players would lead to huge defections by disgruntled customers.
Frequent outages in addition to costly bills are fueling a sharp rise in the number of potential and existing customers opting for alternative electricity sources, mainly solar and biomass.
Big firms such as Kenya Breweries, Bamburi Cement, Carbacid Investments, Africa Logistics Properties, and Mombasa International Airport are some of the leading electricity consumers who have put up alternative electricity sources.
Wealthy homes are also putting up solar systems in a bid to end reliance on Kenya Power’s supply besides cutting bills.
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