How EPRA Regulates Power Consumption By Companies

Plums of smoke emanating from a factory.
Plums of smoke emanating from a factory.
File

Increased consumption of energy by big companies and institutions compelled the government to introduce measures aimed at taming their power bills which often run into millions.

Under the Energy Management Regulations of 2012, big power consumers are required to conduct an audit of electricity consumed every three years.

The audit is usually done by energy auditors approved by the Energy and Petroleum Regulatory Authority (EPRA).

Consequently, after an audit report is submitted to the companies, it is required that the corporate bodies draft an investment plan detailing how they plan to reduce their power bills.

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A photo of a tenant inputting tokens to a meter
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Kenya Power

"An owner or occupier of designated facilities shall, within six months from the end of the financial year in which an energy audit is undertaken, prepare and submit to the Commission an energy investment plan for the next three years, setting out proposals for the conservation of energy during that period," reads the regulations in part.

Further, the institutions are required to actualise their power-saving proposals within a period of three years.

"The owner or occupier shall take measures to realize at least fifty per cent of the identified and recommended energy savings specified in the energy investment plan by the end of three years and thereafter at every audit reporting date," reads the regulations in part.

Companies that comply with the set regulations are then awarded compliance certificates by EPRA.

Additionally, big power consumers are required to keep records of their power bills and other energy bills for a period of not less than half a decade.

"The owner or occupier of a facility shall maintain records of information for every designated facility for a minimum period of five years from the date of occupation of the facility, which shall include monthly and annual electricity, fuel and water consumption.

"Also included is the monthly production data or occupancy levels; and up-to-date building plans, infrastructure plans and floor area drawings," read the statement in part.

These entities are classified into three categories namely; low, medium or high consumers.

In enforcing the law, a company can part way with a Ksh1 million fine if they fail to facilitate an audit of their energy consumption.

File photo of EPRA Director General Daniel Kiptoo
EPRA Director General Daniel Kiptoo speaking at a conference in Nairobi in 2022.
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EPRA