Energy regulator tells PS to stop LPG crackdown

The energy regulator has criticised Interior Principal Secretary Karanja Kibicho’s crackdown on businesses breaching the new cooking gas rules amid fears that the spate of arrests will trigger a shortage of LPG.

Energy and Petroleum Regulatory Authority (EPRA) Director-General Pavel Oimeke has asked the Interior PS to allow the regulator to enforce the new rules, which were introduced in July and which will be fully applied starting from December.

The rules bars selling cooking gas without a receipt, transportation of more than three gas cylinders in a car without regulatory exemptions, discharging bulk gas in a location that lacks regulatory approval and refills that lacks brand owner’s consent.

Police have in recent days been arresting gas dealers countrywide following a September 5 order from Dr Kibicho to implement the gas rules and send a report to his office every Friday.

EPRA has described some of the arrests as premature and asked Dr Kibicho to allow the energy regulator enforce the rules with police expected to provide intelligence.

“In order to ensure smooth regulatory transition and thereby avert a supply crisis in the LPG cylinder retail sector, the authority wishes to inform you that it shall lead all the enforcement exercises with regards to L.N 100 of 2019,” Mr Oimeke said in a September 23 letter and which was addressed to Dr Kibicho.

“The authority further requests for the assistance of the national police service in undertaking surveillance and intelligence gathering where such enforcement activities are planned.”

The energy regulator informed the PS that the existing gas dealers have until December to comply with some of the new rules, especially obtaining the new licences.

Police have recently arrested dozens of LPG retailers in various towns for operating without EPRA licenses.

Some have already been presented in court, where their cases were mentioned before they were released on bond.

“We were almost 50 at Kandara police station and we were charged and released on a Sh100,000 bond or cash bail of Sh50,000,” said Maureen Wanjau, a gas dealer.

The energy regulator has, however, warned that those dealing in the sale of gas illegally will not be offered the six-month exemption.

Penalties for illegal gas refiling and discharging bulk gas in a location that lacks regulatory approval have been increased more than tenfold to a minimum fine of Sh10 million.

Selling cooking gas without a receipt will be an offence attracting a fine of Sh50,000.

The receipt must include the name and telephone of seller, contacts of the consumer, cylinder brand, date of sale as well as the serial number of the seal and gas container.

This is aimed at tracking every cylinder from the retailer to homes, with the records expected to be stored for at least one year.

Marketers will be expected to be in a position to track cylinders by use of Radio Frequency Identification or quick response code or any other appropriate technology under the tightened regulations.

Dealers will also be required to maintain a list of their authorised filling agents, wholesalers, retailers and cylinder requalification agents, serial numbers or quick response codes and date of requalification of each cylinder.

Wholesalers who fail to keep gas cylinder records for at least one year also face a fine of Sh50,000 for each offence.

Peter Macharia, the chairman of the Energy Dealers Association, said EPRA had failed to sensitise stakeholders on implementation of the new regulations, especially in rural areas.

“We are not against the regulations but we are asking the regulator to sensitise people on what to do, what requirements they need, and how they go about getting the licenses,” Mr Macharia said.

The stepping up of the fight against illegal LPG dealers comes in a period when gas prices are trading at 2016 levels before the government removed value-added tax (VAT) on the clean fuel.

The cost of refilling a 13-kg gas cylinder at petrol stations has increased to about Sh2,200.

Prices stood at an average Sh2,231 in June 2016.