Why you should brace yourself for increased power, fuel prices

NAKURU,Kenya, Feb, 17 – Three months after the Energy and Petroleum Regulatory Authority (Epra) announced new regulations on the solar energy sub-sector that sparked outrage among Kenyans who were shifting from grid power over its huge costs and unreliability, the industry regulator now says that the cost of power and fuel is likely to increase.

This comes as the industry regulator embarks on a public and stakeholders consultations on 11 new draft petroleum regulations before their approval.

The regulations are expected to operationalize the Petroleum Act of 2019 and in effect change how the sub-sector players will conduct their businesses.

The guidelines which will see pump prices increase, involves a review of the price pumping formula which has been factored in the new component.

The Energy and Petroleum Regulatory Authority acting Director-General Daniel Kiptoo who led the agency in collecting views from stakeholders in Nakuru county said the exercise will continue across all major towns in the country.

“The draft regulations will provide a legal framework for the authority to streamline the importation of petroleum products, business licensing and construction of petroleum facilities,” said Energy and Petroleum Regulatory Authority acting Director-General.

The regulations have also reviewed the minimum operating stocks that oil marketing companies are required to maintain as well as a different approach to operating the strategic petroleum reserves.

Tankers moving petroleum products will also now be heavily scrutinized.

“The regulations will help improve petroleum supply and distribution logistics in the country while ensuring only prudently incurred costs are passed onto consumers,” he said.

Under the new legal framework, consumers will be assured of a supply of quality petroleum products under the set standards of environment, health and safety.

The regulatory authority had in December last year come under heavy criticism following the publication of draft regulations to govern solar power.

The regulations had placed higher demands on technicians installing large solar power systems, a move seen by members of the public as a ploy to suppress the industry amidst serious competition threatening Kenya power’s revenue source.