Parliament Initiates Move to End Kenya Power Monopoly on Electricity Meters

Kenya Power staff at work
Kenya Power staff attending to a transformer during a past maintenance exercise in Nairobi County.
Photo
Kenya Power

Members of Parliament on Thursday, March 21, initiated a move aimed at breaking the monopoly held by Kenya Power and Lighting Company (KPLC) over the sale of electricity meters. 

This initiative is part of a larger effort to address delays in connecting thousands of Kenyan households to the national power grid.

The National Assembly Energy Committee announced plans to develop a Bill that would introduce more licensed entities authorised to sell electricity meters. This move seeks to ensure that consumers are not solely reliant on Kenya Power for meter procurement.

Vincent Musyoka, the chairman of the committee, disclosed this strategy during a meeting with Kenya Power's management to address concerns raised by the Auditor-General for the financial year ending June 2022/2023. 

Among the key issues flagged was the significant backlog of over 21,000 consumers awaiting connection due to a shortage of meters.

A KPLC technician during a routine transformer maintenance.
A Kenya Power technician during routine transformer maintenance.
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Kenya Power

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.

These revelations emerged days after the Energy and Petroleum Regulatory Authority (EPRA) proposed a stringent limitation on the System Average Interruption Frequency Indicator (SAIFI). This indicator measures the frequency of blackouts experienced by an average consumer, with the proposed limit set at 20 interruptions per year.

SAIFI, calculated as disruptions per customer, is a vital metric used to gauge the reliability of electricity supply. Typically, it is assessed over a year, with the median number for North American utilities hovering around 1.10 interruptions per user.

However, the introduction of this new regulation poses a considerable challenge for Kenya Power, given its history of poor performance marked by a high number of unplanned electricity outages. 

Official records from Kenya Power revealed that customers experienced an average of 44.9 unplanned blackouts in the year leading up to June 2023.
 

Kenya Power technicians fixing a problem on a pole after customers' complaints in September 2022.
Kenya Power technicians fixing a problem on a pole after customers' complaints in September 2022.
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KPLC