26th November 2003

INDUSTRY MONITORING

ERB unveils plans to lower power tariffs

THE Electricity Regulatory Board (ERB) has unveiled a strategic plan that might result to lower power tariffs in the short-term.

The five-year plan unveiled during ERB fifth anniversary also focus on the need for consumer education.

The first phase of the consumer education strategy will be launched in Friday at the Safari Park Hotel, with a series of consultations to enhance dialogue with the stakeholders.

Addressing the press at the board’s offices, the executive chairman, Engineer Isaac Bondet said the event will kick off with the launch of the board’s website, and a crucial consultative parley with stakeholders.

“Among the topics to be delved on at the stakeholders meeting, are issues on consumer affairs, which will be presented by ERB, generation expansion programme, and social responsibility by Kenya Electricity Generating Company, connectivity by the Kenya Power and Lighting Company, and standards in the power industry by the Kenya Bureau of Standards,” the chairman.

He also revealed that the Kenya Association of Manufacturers (KAM) would delve on the consumer perspective. He was emphatic that these were some of the pertinent areas that should be in the information domain of the public.

Bondet noted that the board’s objective in regulation was premised on bringing about desirable social outcome, which is otherwise unattainable due to insufficient competition in the market.

To achieve the objective of regulation, the chairman stressed industry best practice requires a clear separation of ownership, operation and regulation of sub-sector entities.

He understood the fact that industry best practices also require an autonomous and credible regulator in order to attract investment and private sector participation in electricity sub-sector.

The rationale, he was clear, for establishing an autonomous regulator is to facilitate objectivity in making the decision on product pricing, quantity and quality as well as environmental, health and safety regulations, and ensure consumer protection.

With regard to the sustainability of the sub-sector utilities, the regulator’s role is to ensure financial viability of such sector utilities, the regulator’s role is to ensure financial viability of such sector utilities, implement government policy and make policy proposals for consideration by government.

The ERB was established pursuant to Section 119 of the Electricity Power Act, 1997 to regulate the generation, transmission, distribution and supply of electric power in Kenya.

Bondet was optimistic that given recent changes in the political environment, and in the management of sector entities, the need for enhanced dialogue between ERB and its various stakeholders has become the more critical and urgent.