ERC to request the house when altering tarrifs

The energy regulator will have to get the Parliament’s nod before adjusting electricity tarrifs.

This will happen if a proposal by a consumers lobby group seeking to protect users from escalating prices are implemented.

Through the proposal, Energy Regulatory Commission will be compelled to seek the house approval in order to change electricity tariffs.

The Consumer Federation of Kenya (Cofek) is lobbying legislators to amend the Energy Act through the Finance Bill 2011 to abolish the price control regime in the oil industry.

Currently, Kenya Power presents tarriff adjustments to the energy regulator for approval after which they are implemented.

The new twist looks set to curtail the powers of the ERC at a time when the regulator has come under sharp criticism from consumers over an apparent failure of cushioning consumers from exorbitant fuel prices.

Cofek secretary general Stephen Mutoro says his organisation has already engaged some MPs, who have agreed to “seek immediate amendments to the Finance Bill 2011”.

“We have talked to about 20 MPs and they have agreed to support our proposals,” Mr Mutoro said.

The consumer group says the pricing should be left to market forces as the price capping regime has rendered the industry uncompetitive, open to cartels and excessive guarantee to retail margins.