Utility firm Kenya Power will be forced to pay its consumers for financial losses incurred during power outages if a proposal by the Energy and Petroleum Regulatory Authority (EPRA) is approved.
In the new regulations published on Monday, May 4, 2021, the regulator seeks to compel the power utility to compensate consumers for financial losses, equipment damage, physical injuries, and death due to power outages.
Even so, should the draft regulations be adopted, Kenya Power is required to notify consumers at least two days prior to the planned interruption.
The company currently compensates for injuries and damaged equipment only but does not indemnify business and domestic customers who incur financial losses.
“A distribution and retail supply licensee shall inform the consumer of the intended disconnection or interruption and stipulate the date and intended duration of the disruption through appropriate means including public notices on print media, radio broadcasts, electronic mail, and SMS,” reads part of the regulations.
According to the strict regulations that are, among others, meant to ensure consumers get value for their money, power should be interrupted for planned maintenance purposes and emergency cases only.
Kenya Power is nevertheless allowed to discontinue power supply without notice in the case of emergency but is required to rectify the situation and advise its customers in a timely manner.
Moreover, Kenya Power will be obligated to file an assessment of power interruptions with EPRA on a monthly and annual basis including the average number of items any given customer experiences interruption over a period.
The tough rules require Kenya Power to file the average interruption duration for each customer served during the period under review.
Failure to achieve retail supply license guaranteed performance standards will round off to fines ranging from fines per violation to blanket annual penalties.
The contravention of voltage limits and harmonic distortions of power supply will for instance results in fines of Ksh.1000 for each violation recorded.
At the same time, the contravention of reliability indicators on the frequency and duration of interruptions will attract fines of Ksh.20,000 annually.
The proposal comes a few weeks after President Uhuru Kenyatta appointed a task force to review power purchase agreements between it and private electricity generators
Stakeholders had raised concerns about the company purchasing power at outrageous costs and pushing consumers to shoulder the burden
Kenya Power is further required to furnish EPRA with complaints filed by customers on the quality of electricity supplied including property damages incurred, financial losses, bodily injury, or loss of life.