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GAZETTE NOTICE NO. 6420
GAZETTE NOTICE NO. 6420
THE ENERGY AND PETROLEUM REGULATORY AUTHORITY GUIDELINES FOR ALLOWED RETURN ON EQUITY PURSUANT to section 163 (3) of the Energy Act
ACT
PURSUANT to section 163 (3) of the Energy Act, 2019, the
Energy and Petroleum Regulatory Authority publishes guidelines for the computation of Allowed Return on Equity for generation, transmission and distribution projects in the country:
The Capital Asset Pricing Model shall be the preferred approach of the Authority.
The risk free rate shall be the rate earned Government issued long term bonds and shall be 12.8%.
The Market premium shall be the difference between the market return and risk free rate.
The Beta shall be determined for each company individually.
The Return on Equity allowed for public utilities shall be 12.5% post tax.
Dated the 17th April, 2024.
DANIEL K. BARGORIA, MR/5723346 Director-General.
THE KENYA GAZETTE 24th May, 2024
Dated the 17th April, 2024.
DANIEL K. BARGORIA,
Director-General.
Extracted Entities (1)
previous_gazette_ref
6420
Details
- Act / Legislation
- THE ENERGY AND PETROLEUM REGULATORY AUTHORITY GUIDELINES FOR ALLOWED RETURN ON EQUITY PURSUANT to section 163 (3) of the Energy Act
- Signed By
- DANIEL K. BARGORIA
- Title
- Director-General
- Date Signed
- 17th April 2024
- Page
- 51
- Extraction Method
- regex
Source Gazette
Vol. CXXVI No. 71
Published 10th February 2024