• Mon. Jan 18th, 2021

How to cut the firm’s power use.

Byflorence wairimu

Oct 3, 2020

The government will compel local industries to consume less electricity to reduce waste while increasing energy efficiency.

In new proposals, the Energy and Petroleum Regulatory Authority (EPRA) will require companies to put in place energy-saving mechanisms and will penalize them if they fail to stick to the measures.

The draft regulations on energy management say the regulator will set power consumption benchmarks that companies have to adhere to, depending on the sectors they operate and their size. 

Epra said in a statement yesterday that the objective of the regulations is to improve energy efficiency and conservation among industrial, commercial and institutional facilities.

While the proposed regulations are in line with efforts put in place to lower the impact of climate change, they might come at a heavy cost for local industries as well as power industry players.

The move could see manufacturers and other big power consumers forced to invest in more energy efficient equipment and possibly alternative power production systems such as solar so as to reduce electricity consumed from the grid.

 It could also affect investors in power production and distribution who will suffer stagnation or slow growth in revenues as the power saving mechanisms bear fruit.

The energy sector relies heavily on industrial customers, who despite being a handful account for about half of its revenues.

EPRA will classify companies as high, medium and low energy consumers.

It will also publish energy consumption benchmarks and performance indicators for different sectors within three years of the regulations coming to force.

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