GAZETTE NOTICE NO. 6629

PURSUANT to section 110 (3) of the Energy Act, 2006, the Energy Regulatory Commission hereby invites members of the public to submit written comments within forty (40) days from the date of publication of this notice to the Director General, the Energy Regulatory Commission, on the proposed Regulations in respect of Energy Management which are set out in Part II hereunder. 2. Comments may be hand-delivered, posted, and facsimiled or e- mailed to the Energy Regulatory Commission. 3. Physical address: The Energy Regulatory Commission, Eagle Africa Centre, Longonot Road, Upper Hill, Nairobi 4. Postal address: P.O. Box 42681 -00100, Nairobi. 5. Facsimile Number: +254 20 2717603 6. E-mail address: info@erc.go.ke Part II THE ENERGY (ENERGY MANAGEMENT) REGULATIONS, 2011 Citation 1. These Regulations may be cited as the Energy (Energy Management) Regulations, 2011. Application 2 These Regulations shall apply to the owner or occupier of industrial, commercial and institutional facilities using any form of energy. Definitions 3 In these Regulations, unless the context otherwise requires— ―Act‖ means the Energy Act 2006; "approved" means approved by the Commission; ―Commission‖ means the Energy Regulatory Commission established under section 4 of the Act; ―designated facility‖ means any facility that has been assigned an energy consumption rating by the Commission; ―energy audit‖ means an inspection, survey and analysis of energy flows for energy conservation in a building, process, or system to reduce the amount of energy input into the system without negatively affecting the output(s); ―energy auditor‖ means a person who carries out inspection, survey and analysis of energy flows for energy conservation in a building, process, or system to reduce the amount of energy input into the system without negatively affecting the output(s); ―energy audit firm‖ means, a registered organisation which carries out inspection, survey and analysis of energy flows for energy conservation in a building, process, or system to reduce the amount of energy input into the system without negatively affecting the output(s); ―energy efficiency‖ means the goal of efforts to reduce the amount of energy required to provide products and services; ―energy conservation‖ means efforts made to reduce energy consumption through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption; ―energy investment plan‖ means the allocation of resources for the purpose of advancement, capacity growth, and improvement of energy efficiency and conservation measures; "facility‖ means any place in which energy is consumed including factories, commercial buildings, institutional buildings, local authorities, municipalities, pipelines, water companies, street lighting; ―facility owner or occupier‖ means an owner, a charterer or a lessee of a facility; ―fuel‖ means, any combustible material that can be used to generate energy in a controlled manner; "licensed" means holder of a licence issued by the Commission; Energy Management Policy 4. (1) The owner or occupier of the designated facility shall have an energy management policy which shall have the minimum requirements as provided in the First Schedule. (2) The owner or occupier of the designated facility shall file the energy management policy with the Commission for approval before implementation. (3) The owner or occupier of every designated facility shall designate an energy officer who shall be responsible for the development and implementation of energy efficiency and conservation. (4) The owner or occupier of a designated facility shall maintain records of information for a minimum of period five years from the date of occupation of the facility, which shall include— (a) Monthly and annual electricity, fuel and water consumption; (b) Monthly production data and / or occupancy levels; and (c) Up to date building plans, infrastructure plans and floor area. Energy Audits 5 (1) Every designated facility shall undertake an energy audit at least once every three years. (2) An energy audit shall be undertaken by a licensed energy auditor or energy audit firm. (3) The energy audit report shall contain, as a minimum, the items provided in the Second Schedule. (4) The facility owner or occupier shall submit the energy audit report to the Commission, online or in soft copy, within six months from the end of the organization’s financial year. (5) The facility owner or occupier who fails to submit an audit report within the stipulated time shall be liable to a penalty as provided in these Regulations. Comment [j1]: Adding the word ―Energy‖ might appear as repetition but it means these are Energy Act Regulations on Energy Management (6) The Commission shall acknowledge receipt of any submitted energy audit report within thirty days. (7) If the Commission is dissatisfied with any Energy Report submitted to it, it may require the owner or occupier of a facility, at his own cost, to engage an independent energy auditor to undertake an energy audit. The Owner or Occupier shall appoint the independent auditor from a list of not less than five (5) auditors recommended by the Commission. (8) An energy auditor shall execute a quality assurance declaration form on completion of an energy audit as provided in the Third Schedule. (9) The Commission or its agent may subject the energy audit report to verification after giving a minimum fourteen (14) days notice to the facility owner or occupier. (10) The Commission or its agent may undertake an energy audit on a facility giving a minimum fourteen (14) days notice to the facility owner or occupier. The Owner or Occupier of a facility shall allow the Commission’s agent appointed under this regulation access to the facility for purposes of verification Licensing of Energy Auditor and Energy Audit Firm 6 (1) A person shall not carry out an energy audit unless the person is licensed by the Commission as an energy auditor or energy audit firm. (2) To be licensed by the Commission as a an energy auditor a person must— (a) Have qualifications and experience as provided in the Fourth Schedule. (3) To be licensed by the Commission as an energy audit firm an organization must— (a) be registered in Kenya; and (b) have in its employment a licensed energy auditor. (4) Every licensed energy auditor or energy audit firm shall take out and maintain professional indemnity insurance. (5) The categories of licences shall be as provided in the Fifth Schedule. (6) A person desirous to be licensed as an energy auditor or energy audit firm shall make an application as provided in the Sixth Schedule. (7) The Commission may require and cause such applicant, for the purpose of ascertaining his ability to undertake, engage in or perform energy audit work, to be examined, in such manner as it may determine, upon any matter or thing in connection with his application. (8) The Commission shall process all applications expeditiously and in any case, not later than ninety days from the date of receipt of the application, and it may— (a) grant the licence applied for accordingly, either without conditions or subject to such conditions as it may deem fit, or (b) refuse to grant the licence applied for, giving reasons thereof. (9) A licence issued under this Regulation shall be valid for one year from the date of issue. (10) Where, upon application, it is shown to the satisfaction of the Commission that a licence has been lost, destroyed or defaced; the Commission may issue a duplicate licence. (11) The Commission shall maintain a register of all licensed energy auditors. (12) The register shall be available at the Commission’s offices for inspection by the public. Renewal of Licence 7 (1) An application for renewal of a licence shall be made at least thirty days before the expiry date of the current licence. (2) If the Commission is satisfied that the applicant continues to meet the conditions for the issue of the licence, the Commission shall renew the licence. (3) If the application for the renewal of a licence has been made before the expiry of the licence but has not been dealt with by the Commission when the licence expires, the licence will remain valid until the application for renewal is dealt with and any renewal in such case shall be deemed to have commenced from the day the licence would have expired before renewal. Revocation of Licence 8 (1) The Commission may suspend or revoke the license where— (a) It is satisfied that the licence holder is either willfully or negligently not operating in accordance with the terms and conditions of the licence; (b) The licence holder is adjudged bankrupt. Energy Investment Plan 9 (1)The facility owner or occupier shall take measures to realize a minimum fifty percent of the recommended energy savings specified in the Energy Investment Plan by the next energy audit reporting date. (2) Every designated facility shall submit an annual implementation report as provide in the Seventh Schedule. (3) The facility owner or occupier who fails to submit an implementation report within the stipulated time shall be liable to a penalty not exceeding Kenya Shillings thirty thousand for each day or part thereof that the breach continues. (4) The facility owner or occupier shall maintain any reports required under these Regulations for a minimum period of five years. (5) The Commission or its agent may conduct an inspection to verify compliance with the implementation report. (6) The Commission shall issue a compliance certificate on request by firms complying with these regulations. Disputes 10 (1) If any dispute arises between the facility owner or occupier and the energy auditor or energy audit firm it shall be referred to the Commission for determination. (2) A person aggrieved by a decision of the Commission may appeal to Energy Tribunal as provided under the Act. Contravention of Regulations 11 A person who fails to comply with any of the provisions of these Regulations commits an offence and shall, on conviction, be liable to a fine not exceeding one million shillings, or to a maximum term of imprisonment of one year, or to both. FIRST SCHEDULE (Regulation 4) ENERGY MANAGEMENT POLICY (1) An Energy Management Policy shall include— (a) A commitment to improve energy efficiency and conservation; (b) A commitment to comply with the Act and these Regulations; (c) A commitment to provide resources necessary to achieve energy efficiency and conservation; (d) A commitment to establish and implement a strategic plan for energy efficiency and conservation; (e) A commitment to train staff to ensure competence in energy efficiency and conservation; (2) The owner or occupier of the designated facility shall ensure that the policy is endorsed by the top management. (3) The owner or occupier of the designated facility shall ensure that the policy is communicated to all staff. SECOND SCHEDULE (Regulation 5) GUIDELINES FOR ENERGY AU DIT REPORT 1. Cover Page 10th June, 2011 THE KENYA GAZETTE 1735 Report title Name of client (company for which the facility has been audited) Location of facility Date of report Audit team and their Qualifications Signature of Auditor or Audit Firm Statement by the company accepting the report and verifying that the audit report has taken into account the company’s financial criteria for funding of projects Signature of company’s representative 2. Executive Summary All information in the Executive Summary should be drawn from the detailed information in the full report. The Executive Summary should contain a brief description of the audit, including: Name of client, location of facility or building audited Objectives of audit Key systems and equipment analyzed Dates of audit Summary of recommended energy conservation measures, annual energy savings and cost savings using the table format below: No. Recommende d Measure Estimated annual energy savings Estimated annual cost savings Estimated implementatio n cost Payback period 2 Total 3. Introduction Objectives of audit The financial criteria and technical/operational limitations Brief description of facility audited. Previous year’s energy consumption and costs, including tariff rates used for financial calculations Breakdown of energy supply and end use(electricity and fuel) Scope of audit 4. Methodology List of instruments used and measurement procedure Pictures and maps showing the locations of the instruments and sensors in use during the audit Measurement error analysis (mandatory) 5. Assumptions Cleary state all the assumptions made in taking measurements, calculations, and financial and economic analysis 6. Data Analysis and Findings Description of systems or equipment audited, their capacities and ratings, design and operating conditions Inventory of key energy consuming equipment and systems Review of energy ,production and service level data for the baseline period (at least one year) Establishment of Baseline energy consumption data such as the energy efficiency index (EEI – kWh/m /year) of buildings, define d as the amount of energy consumed annually per Gross Floor Area (GFA) of the building. Heat and mass balance where applicable Findings and observations 7. Identified Energy Saving Measures Brief description of the present situation and shortcomings identified Recommended energy saving measures with detailed and clear calculations of the predicted annual energy and cost savings, investment cost and payback period for each measure. All numbers should be supported by data and assumptions must be stated. 8. Energy Investment Plan Summary of recommendations to include: projected annual kWh savings, estimated cost savings, projected investment cost and investment indicators such as payback period, return on investment and internal rate of return (IRR). Show clearly the agreed energy investment plan the organisation intends to take in order to improve efficiency and conserve energy. The Plans should show time required for completion, and resources to be used i.e. labour, materials, finances and anything else which is relevant for the project. 9. Monitoring and verification Indicate the monitoring and verification process to be applied. 10. Appendices Information of significant importance, which cannot be presented as a part of the text report (because of number of pages, quality of presentation, etc.) should be presented in appendices. The appendices should include: Schematics and layout drawings of facility or building audited Details of instrumentation used – parameters monitored and duration of monitoring for each parameter Data plots of performance of systems or equipment audited Energy efficiency of major equipment compared against industrial benchmarks Measurement and verification (M&V) plan for monitoring and verifying energy savings for each of the recommendations CD-ROM containing the raw measurement data 11. General Notes to the Report Documentation – All numbers related to the results should be supported by information showing how they were derived. This includes all energy savings, cost savings, investment and payback information. All calculations in the report should be checked for mathematical accuracy. SI units must be used in all parts of the report. Measurement and instrumentation accuracy Grammar and style – The report should be written in proper prose. The language should be clear, concise and understandable. All graphs and plots should be properly labeled and show the dates when the readings were taken. The report should be printed on both sides to save paper. A soft copy of the report shall be sent to the ERC. THIRD SCHEDULE (Regulation 5) QUALITY ASSURANCE DECLARATION FORM I/We have conducted an energy audit as set out in the Energy Management Regulations 20112011, which comprise the company energy consumption and costs as at Owner’s Responsibility for the Energy Investment plan The Owner/ Occupier are responsible for the preparation and fair presentation of this e Energy Investment plan and the requirements of the Energy Management Regulations 20112011. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the Energy Investment plan that is free from material misstatement, whether due to fraud or error, selecting and applying appropriate energy audit methodologies; and making audit estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on the energy supply and end use based on our audit. We conducted our audit in accordance with International Standards on Energy Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the energy audit and investment plan are free from material misstatement. An energy audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the energy and financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we considered the internal controls relevant to the company’s preparation and fair presentation of the Energy investment plan in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the company’s internal controls. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying Energy Investment Plan give a true and fair view of the possible intervention to improve energy efficiency and conservation of the company as at ……………., in accordance with Energy Management Regulations 20112011. Report on Other Legal Requirements As required by the Energy Management Regulations 2011, we report to you, based on our audit that: We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; In our opinion proper energy and financial records have been kept by the company, so far as appears from our examination of those records; and The company’s energy supply and end use are in agreement with the records. Certified Energy Auditor (Kenya) Licence Number _______________________________ National ID/Passport Number______________________ Sign ____________________________________ Date ________________________________________ FOURTH SCHEDULE (Regulation 6) QUALIFICATIONS AND EXPERIENCE FOR LICENSING Energy Auditor –Minimum Education qualifications and Professional experience To be licensed as an Energy auditor an applicant must have a minimum of any one of the following combinations of academic and professional qualifications. Education (Academic) Professional(Job) 1 A degree in technology or engineering or equivalent in a relevant field. 3 + Years experience of work experience involving use Energy in operations or Maintenance or Planning 2 Post graduate Engineer (Masters of Engineering / Masters of Technology) 2+ Years experience of work experience involving use Energy in operations, Maintenance and Planning 3 A graduate Engineer with post-graduate degree in Management or equivalent 2+ Years experience of work experience involving use Energy in operations, Maintenance and Planning 4 Higher National Diploma Engineer or equivalent 6+ years experience….. 5 A post graduate in Physics or Electronics or Chemistry (with Physics and Mathematics at graduation level) 3+ years experience of work experience involving use…. 2. An energy management certification exam from a body recognized by Energy Regulatory Commission, or Post Graduate Diploma in Energy Management, or Masters of Science in Energy Management from recognized University. 3. The person applying for energy audit licence shall have conducted at least five energy audits of which one shall be an investment grade audit if he is to be licenced as Category A Auditor. FIFTH SCHEDULE (Regulation 6) CATEGORIES OF AUDIT LICENCES 1. Category A Auditor. An Energy Auditor licenced to carry out investment grade audits. S/he shall have met all the qualifications in fourth Schedule. 2. Category B Auditor An Energy Auditor licenced to carry out comprehensive audits. S/he shall have met all the qualifications in Third Schedule except the requirement of investment grade audit (i.e. the person applying for energy audit licence shall have conducted at least five energy audits). SIXTH SCHEDULE (Regulation 6) APPLICATION FORM A: APPLICATION FOR LICENCE AS AN ENERGY AUDITOR 1. Name:______________________________ 2. Age:___________________________________ 3. Nationality:_______________________________________ 4. IdentityCard/PassportNumber:_________________________ 5. Designation:____________________________________ 6. Category of Audit: A or B (_________) 7. Academic Qualification:______________________________ a. ____________________________________________ b. ____________________________________________ 8. Professional Qualification:___________________________ a. _____________________________________________ b. _____________________________________________ 9. Other specific qualification on energy related subjects ( if any) _________________________________________________ 10. Membership of professional and/or Technical Associations a. ______________________________________________ b. _____________________________________________ Employment Record Period from /To Name of Company Position Held Responsibilities and Experience 10th June, 2011 THE KENYA GAZETTE 1737 11. Previous Energy Audits Energy Audit Dates Energy Audit Location Client Name Address/Contact Info Category of Audit Scope of the Energy Audit Status of the Energy Project after Audit 12. Provide copies of Academic, profession, training certificates of Lead Auditor and copy of national ID of passport. Note: For items 10 and 11, Applicants May provide detailed information on separate sheets if the space provided is not adequate. B: APPLICATION FOR LICENCE AS AN ENERGY AUDIT FIRM Purpose of Application *: New Application.___ Renewal__- 1. Company Name :______________________________________ 2. Category of the Energy Audit Firm ( i.e. A or B) ______ 3. Date:______________________________________ 4. Contact details a. Physical Address:_____________________________ b. Telephone No.:_____________________________ c. Cell Phone No.______________________________ d. Email Address:___________________________ e. Website (if any):__________________________ 5. Details of the Licenced Energy Auditor ( i.e. Lead Auditor) Name:___________________________________________ Nationality _______________________________________ ID/Passport Number_______________________________ Licence Number __________________________________ Position held ____________________________________ 6. Provide copies of the following certificates a. Certificate of registration from the registrar societies b. VAT certificate c. Tax Compliance certificate d. Academic, profession ,training certificates of Lead Auditor and copy of national ID of passport. SEVENTH SCHEDULE (Regulation 9) GUIDELINES FOR IMPLEMENTATION REPORT 1. Cover Page Report title Name of client (company for which facility has been audited) Location of facility or building Date of report Audit firm Audit team and their project designations 2. Executive Summary All information in the Executive Summary should be drawn from the detailed information in the full report. The Executive Summary should contain a brief description of the following: Name of client, location of facility or building audited Measures Implemented Summary of energy saving measures, and the measured annual energy and cost savings in table format Measur e No. Measure Actual annual energy savings Actual annual cost savings Actual implementati on cost Updated Payback period 2 Total 3. Measures implemented and cost of implementation Details of measures implemented Description of systems or equipment modified, their capacities and ratings, design conditions, equipment schedules, including information such as the type of systems, type of controls, type and number of auxiliary equipment, etc. Milestone chart showing the timeline of implementation Cost breakdown of each measure in table format, with reference to the payment documents 4. Measurements and Calculations Details of the measurement and verification system adopted to measure and compare actual savings to savings projected in the detailed audit Formulae and key data used for calculations Detailed instrumentation plan Parameters monitored and duration of monitoring of each parameter Dates of data collection and logging Performance of systems or equipment Findings and observations 5. Savings Achieved  Summary of the measures implemented the predicted and actual annual kWh savings, and the predicted and actual annual cost savings. Statement by the company on whether or not the implementations meet the company’s savings target stated in the Audit report 6. Appendices Information with significant importance, which cannot be presented as a part of the text report (because of number of pages, quality of presentation, etc.) shall be presented as appendices. Data plots of performance of systems or equipment improved Data plots of energy consumed vs. time before and after implementation on the same graph, showing the improvement Energy efficiency of major equipment compared against benchmarks set during the detailed audit Current energy bills 8. General Notes to the Report Content – The report should focus on the measures stated in the detailed energy audit report, and with reference to the figures made then. Documentation – All numbers related to the results should be supported by information showing how they were derived. This includes all energy savings; cost savings, investment cost and payback information. Mathematical accuracy – All calculations in the report should be checked for mathematical accuracy. Grammar and style – The report should be written in proper prose. The language should be clear, concise and understandable. All graphs and plots should be properly labeled and named, highlighting the important points to take note. A soft copy of the report shall be sent to the ERC. Dated the 19th May, 2011. KABURU MWIRICHIA, Director-General, MR2067617 Energy Regulatory Commission.