Functions of Energy and Petroleum Regulatory Authority in Kenya

This article highlights the functions of the Energy and Petroleum Regulatory Authority in Kenya. This is a state corporation that was established in 2019 as the successor to the Energy Regulatory Commission (ERC) which had been operation since 2006. It is responsible for the economic and technical regulation of the electric power, renewable, and petroleum sub-sectors in Kenya.

The authority’s headquarters are located along Longonot Road at the Eagle Africa Centre in Upper Hill, Nairobi. Below are the roles and functions of the Energy and Petroleum Regulatory Authority as outlined in Section 10 of the Energy Act 2019.

Functions of Energy and Petroleum Regulatory Authority in Kenya

1. It regulates the generation, importation, exportation, transmission, distribution, supply, and use of electrical energy in Kenya.

2. It regulates the importation, refining, exportation, transportation, storage and sale of petroleum and petroleum products in Kenya.

3. It regulates the production, conversion, distribution, supply, marketing, and use of renewable energy in Kenya.

4. It regulates the exploration, extraction, production, processing, transportation, storage exportation, importation, and sale of coal bed methane gas and other energy forms in Kenya.

5. It regulates, monitors, and supervises upstream petroleum operations in Kenya in accordance with the law relating to petroleum, the regulations made thereunder, and the relevant petroleum agreement.

6. It provides information and statistics in relation to upstream petroleum operations in Kenya to the Cabinet Secretary responsible for matters relating to petroleum as may be required from time to time.

7. It collects, maintains, and manages upstream petroleum data in Kenya.

8. It receives, reviews and grants an application for a nonexclusive exploration.

9. It coordinates the development of upstream petroleum infrastructure and promotes capacity building in upstream petroleum operations in the country.

10. Inspects and tests any machinery or equipment that has been used, is used, or shall be used in upstream petroleum operations in Kenya.

11. Assess field development plans and make recommendations to the Cabinet Secretary responsible for matters relating to petroleum for approval, amendment or rejection of the plans.

12. Assess tail-end production and cessation of upstream petroleum operations and oversee decommissioning by a contractor.

13. Verifies the measurements of petroleum production to allow for estimation and assessment of royalties and profits of oil and gas due to the National Government.

14. Verifies the recoverable cost of oil and gas due to the parties to a petroleum agreement.

15. Audits contractors for cost recovery.

16. Monitors in consultation with the Competition Authority conditions of contractors’ operations and their trade practices in Kenya.

17. Provides information to the Kenya Revenue Authority for the collection of taxes and fees from upstream petroleum operations.

18. Sets, reviews and approves contracts, tariffs, and charges for common user upstream petroleum facilities.

19. Makes proposals to the Cabinet Secretary responsible for matters relating to petroleum in relation to regulations which may be necessary or expedient for the regulation of the upstream petroleum sector.

20. Works with the relevant statutory authorities to formulate, enforce and review environmental, health, safety, and quality standards for the upstream petroleum sector.

21. Develops guidelines, in consultation with other statutory authorities, in relation to the implementation of treaties, conventions, or protocols affecting the upstream petroleum sector that have been ratified by Kenya.

22. Regulates contracts on upstream petroleum operations not specifically provided for under the law relating to petroleum.

23. Advises the Cabinet Secretary responsible for matters relating to petroleum in the evaluation of the bids and applications made for upstream petroleum blocks.

24. Ensures that contractors uphold the relevant laws, regulations, and petroleum agreement terms.

25. Ensures the establishment of a central database of persons involved in upstream petroleum operations.

26. Manages upstream petroleum data and provide periodic updates and publication of the status of upstream petroleum operations.

27. Investigates complaints or disputes arising from petroleum operations.

28. Issues operational permits and non-exclusive exploration permits in accordance with the law relating to petroleum.

29. Protects consumers, investors, and other stakeholder interests.

30. Develops guidelines on applicable treaties, conventions, and protocols affecting the energy sector in consultation with other statutory authorities.

31. Co-ordinates the development and implementation of national energy efficiency and conservation action plan, in consultation with relevant statutory authorities and other stakeholders.

32. Develops testing and certification procedures, in conjunction with relevant statutory agencies, for certification and testing for energy consumption of equipment and appliances.

33. Ensures, in collaboration with the Kenya Bureau of Standards, that only energy-efficient and cost-effective appliances and equipment are imported into the country.

34. It Certifies energy managers and licenses energy auditors.

35.  It promotes, in consultation with the Kenya National Accreditation Service, the establishment of accredited laboratories for energy efficiency.

Energy and Petroleum Regulatory Authority Contacts

Office Location: Eagle Africa Centre, Longonot Rd, Nairobi

Phone: +254 709 336 000|+254 020 284 7000|+254 708 444 000

Email: [email protected]

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