Private firms to use Kenya Power, Ketraco lines for selling electricity

Private firms will be allowed to distribute electricity through Kenya Power and Kenya Electricity Transmission Company (Ketraco) networks at a fee in a regulatory shift that is aimed at ending the giant utilities’ decades-long monopoly.

According to the draft Energy (Electricity Market, Bulk Supply and Open Access) Regulations, 2024, Kenya Power and Ketraco will allow other firms to use their networks once the firms pay wheeling charges — an amount charged by one electrical system to transmit the energy of, and for, another system or systems.

Read: What Kenya Power-Ketraco assets transfer means

Ketraco owns about 4,660 kilometers of transmission lines across the country while Kenya Power has a total of 310,618 kilometres of both transmission and distribution lines.

The regulations bring to life the long-delayed concept of ‘open access’, where network providers such as Kenya Power and Ketraco will allow access to their networks for competitors because new players may not have the muscle to build new infrastructure.

“A transmission or distribution licensee shall provide non-discriminatory open access to its transmission or distribution system as the case may be for use by any licensee or eligible consumer upon payment of wheeling or use of system charges,” say the regulations.

Energy Cabinet Secretary Davis Chirchir published the draft regulations last week for public review. On Monday, the Energy and Petroleum Regulatory Authority (Epra) kicked off the stakeholder engagements in Nairobi.

The regulations come nearly five years since the Energy Act, 2019 was enacted thereby opening up the country’s power distribution sub-sector to competition for the first time.

This means that for the first time, consumers will have the choice of being supplied by Kenya Power or any other retailer of choice. Further, firms can now also compete with Ketraco for power transmission.

But customers should not expect this change to happen overnight as the State races against time to set up structures for the new electricity market over the next three years.

“The wheeling tariff will cater for operations and maintenance for existing lines which were funded by the government as well as capital expenditure for new transmission lines,” said Epra director-general Daniel Kiptoo.

Read: Kenya Power to transfer assets to Ketraco by December

The open access means that power generators will also have the option of selling their electricity to other distributors other than Kenya Power.

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