Parliament to End Kenya Power Monopoly on Electricity Meters

Parliament to End Kenya Power Monopoly on Electricity Meters

Parliament to End Kenya Power Monopoly on Electricity Meters

On Thursday, March 21, parliamentarians took the first step toward ending Kenya Power and Lighting Company’s (KPLC) monopoly on the selling of power meters. This program is a component of a bigger endeavor to resolve the backlog in connecting thousands of Kenyan homes to the country’s electrical grid.

Plans to draft a bill adding more licensed organizations authorized to sell electricity meters were revealed by the National Assembly Energy Committee. By taking this action, consumers will be less dependent on Kenya Power to purchase meters.

The committee’s chairman, Vincent Musyoka, revealed this plan to Kenya Power’s management in order to allay worries expressed by the Auditor-General for the fiscal year that ends in June 2022–2023.

The large backlog of more than 21,000 customers waiting for connection as a result of a meter shortage was one of the major difficulties noted.

In addressing these challenges, the committee intends to remove barriers hindering other firms from selling meters directly to consumers. However, meters sold by alternative vendors will still require coding by Kenya Power and certification by the utility firm’s engineers before installation.

Musyoka highlighted the potential benefits of this initiative, stating, “We will have shops across the country selling meters to Kenyans, so that you just walk into a shop, buy the meters, and call an authorised Kenya Power engineer to connect the electricity for you without necessarily going to Kenya Power offices.”

He emphasised that this move would not only boost Kenya Power’s revenue but also reduce the waiting time for electricity connections, citing cases where 21,231 Kenyans paid Ksh966,901,128. Individuals have waited up to 11 years despite making payments.

The Energy Committee dismissed claims by Kenya Power attributing connection delays solely to meter shortages. This comes amidst revelations that 42,965 Kenyans who have collectively paid approximately Ksh4 billion, remain without electricity for prolonged periods.

During a National Assembly Departmental Committee on Energy session, Kenya Power’s CEO, Joseph Siror, faced tough questions regarding the delayed connections. The committee sought explanations for discrepancies between internal records indicating completed connections and the reality on the ground.

Siror cited challenges such as material shortages and legal disputes, along with changes in government policies affecting connectivity subsidies. However, the committee pressed for clarity on the fate of consumers who paid for connections but remained underserved.

Gem MP Elisha Odhiambo raised concerns about potential refunds for consumers who did not receive the promised connections. Despite assurances from Kenya Power’s management, questions lingered regarding the handling of payments and the completion status of listed projects.

The committee has demanded detailed proof from Kenya Power to verify the execution of connectivity projects, signalling a proactive stance toward ensuring accountability and transparency in the energy sector.

Days after the Energy and Petroleum Regulatory Authority (EPRA) suggested stricter restrictions on the System Average Interruption Frequency Indicator (SAIFI), these disclosures became public. The suggested upper limit for this statistic, which tracks how frequently a typical consumer experiences blackouts, is 20 disruptions annually.

SAIFI, or disturbances per customer, is a crucial indicator for assessing the dependability of the electrical supply. It is usually measured over a 12-month period, with the average number of interruptions per user for North American utilities being approximately 1.10.

Kenya Power will face significant challenges in implementing this new law, though, considering its track record of subpar performance, which includes a high frequency of unscheduled power outages.

According to official Kenya Power figures, in the year preceding June 2023, consumers faced 44.9 unscheduled blackouts on average.

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