KENYA Law and Practice Contributed by: Mary Waithiegeni Chege, Mary Anne Wachira and Joy Odhiambo, EMSI & Associates
39.81%, followed by hydropower and wind at 24.74% and 13.46%, respectively. 2.4 Market Concentration Limits There are currently no concentration limits regarding the percentage of electricity supply that is controlled by one entity. However, the majority of consumers in Kenya are currently supplied electricity by Kenya Power. The principal laws governing market concentra- tion limits include the following. • The Energy Act empowers EPRA to review the electricity market on a regular basis with a view to enhancing competition, improving efficiency, increasing reliability and security of supply and improving the quality of service by all licensees. • The Competition Act establishes the CAK, which is mandated to investigate any eco- nomic sector it has reason to believe may feature one or more factors relating to unwar- ranted concentrations of economic power. The CAK may require any participant in that sector to grant it – or any person authorised in writing by it – access to records relating to patterns of ownership, market structure and percentages of sales. 2.5 Surveillance to Detect Anti- Competitive Behaviour The principal laws prohibiting anti-competitive behaviour are as follows. • The Energy Act empowers EPRA to review the electricity market on a regular basis, with a view to enhancing competition, improving efficiency, increasing reliability and security of supply and improving the quality of service by all licensees. EPRA is also mandated to monitor, in consultation with the CAK, the
conditions of contractors’ trade practices and to review the electricity market on a regular basis, with a view to enhancing competition. The regulator also plays a role in ensuring fair competition and transparency in the imple- mentation of a feed-in tariff system. • The Competition Act is the principal law that prohibits anti-competitive behaviour and establishes a market surveillance and enforcement process. • The Energy (Electricity Licensing) Regulations promote fair competition by requiring licen- sees to avoid undue preference or discrimina- tion, refrain from anti-competitive practices or arrangements in any part of the electricity supply chain and comply with all regulatory directives aimed at preserving fair competi- tion. The Energy Act mandates EPRA to review the energy market regularly, with a view to enhanc- ing competition. In carrying out this role, EPRA has powers to set, review and approve tariff changes, and may also undertake investiga- tions of various power sector players as may be necessary. Amongst other things, the CAK has the power to carry out an investigation following the receipt of complaints related to restrictive trade practices, abuse of dominance or abuse of buyer power. EPRA has been granted significant powers of enforcement under the Energy Act, including the power to: • issue orders in writing requiring or prohibiting certain acts or things from being performed or done; • formulate, set and review environmental, health, safety and quality standards for the
166 CHAMBERS.COM
Powered by FlippingBook