KENYA Law and Practice Contributed by: Mary Waithiegeni Chege, Mary Anne Wachira and Joy Odhiambo, EMSI & Asssociates
The Energy (Net Metering) Regulations, 2024 provide a framework for consumers generating through renew- able energy technologies with an installed capacity of less than 1 MW, to supply electricity to the grid in times of over-production and to make use of the credited energy during other times. 5.6 Electricity Distribution System Charges and Terms of Service The process for establishing distribution system charges and terms of service broadly mirrors that of the transmission sector, but is further detailed under both the Energy Act and the Electricity Market Regu- lations. Under the Energy Act, all electricity supply and bulk supply contracts must incorporate tariffs that are approved by EPRA, ensuring that charges for distribu- tion services remain just and reasonable, and reflect efficient costs and prudent investment. Similarly, use- of-system charges for access to distribution networks must be fair and non-discriminatory, supporting open access for other licensees and eligible consumers. The Electricity Market Regulations reinforce this framework by requiring that bulk supply and network service tariffs be approved by EPRA, and that dis- tribution licensees provide non-discriminatory open access to their systems. The regulations also require distribution licensees to facilitate the efficient, reliable and safe wheeling of electricity, and comply with mar- ket rules governing pricing, energy accounting and system use.
In relation to quality of service, the Energy (Reliability and Quality of Electrical Energy Supply and Service) Regulations require licensees to maintain reliabil- ity standards and submit periodic reports to EPRA. The Distribution Grid Code further sets technical and operational standards for planning, connection and system performance. Overall, distribution charges and service terms are determined through regulated contracts, EPRA over- sight and market rules, ensuring transparency, cost- reflectivity and system reliability. Retail tariffs are published by EPRA, with the most recent being the KPLC Retail Electricity Tariff Review for the 2022/23 – 2025/26 4th Tariff Control Period, effective 1 April 2023. In March 2026, KPLC applied for a Retail Electricity Tariff Review, but the Ministry of Energy and Petroleum withdrew the application as it proposed an increase in tariff for domestic and indus- trial consumers. The Energy Act entitles persons aggrieved by a deci- sion of EPRA to appeal to the Energy and Petroleum Tribunal within 60 days of the decision. A further right of appeal to the High Court against a decision of the Tribunal is available within 30 days of the Tribunal’s decision. In addition, all distribution and retail licen- sees are required to have grievance and complaint- handling procedures in place that are accessible to consumers.
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