Energy (Energy Management) Regulations, 2012

The Energy Regulatory Commission (“ERC”) has notified all owners and occupiers of industrial, commercial and institutional facilities that they are required to comply with the provisions of the Energy (Energy Management) Regulations 2012 by 28 September 2015.

Requirements Under The Regulations

All designated facilities are required to fulfil the following obligations:

Energy management policy

The owner or occupier is required to develop an energy management policy in accordance with set requirements and file the same with the ERC for approval. The owner or occupier is also required to designate an energy officer who shall be responsible for the development and implementation of energy efficiency and conservation.

Energy audits

The owner or occupier is required to contract a licensed energy auditor to undertake an energy audit of the facility at least once every three years. The audit report should be submitted to the ERC for approval within 6 months from the end of the financial year in which the audit is undertaken.

Energy investment plan

Within 6 months from the end of the financial year in which the audit is undertaken, the owner or occupier is required to prepare and submit to the ERC an energy investment plan for the next three years setting out proposals for energy conservation for that period.

Energy conservation measures

The owner or occupier is required to commence the implementation of energy saving measures identified from the audits and accomplish at least fifty percent (50%) of the recommended energy savings within a period of three years.

Implementation Reports

The owner or occupier is required to submit an annual implementation report as provided in the regulations, failure to which the facility owner or occupier will be liable to a penalty not exceeding thirty thousand shillings (Kshs 30,000) for each day, or part thereof, that the breach continues.

Penalty

The Regulations provide for a general penalty. 

Comment: The Regulations make it an offence for an owner or occupier to fail to submit an audit report to the ERC or to deny the ERC or its agent access into the facility for the purposes of conducting an energy audit. 

In addition, any person who carries out an energy audit without a valid licence issued by ERC commits an offence.

Any person who commits an offence under the Regulations is liable on conviction to a fine not exceeding one million shillings (Kshs 1,000,000), or to a maximum term of imprisonment of one year, or both.