GAZETTE NOTICE NO. 232

IN EXERCISE of the powers conferred by sections 162 and 208 of the Energy Act, 2019, the Cabinet Secretary for Energy makes the following Regulations. PART I — PRELIMINARIES Citation 1. These Regulations may be cited as the Energy (Net-metering) Regulations, 2022. Application 2. These Regulations shall apply to— (i) prosumers; and (ii) distribution licensees. Definitions 3. In these Regulations, unless the context otherwise requires— "Act" means the Energy Act Number 1 of 2019; "Area of Supply" means the area within which a Licensee is for the time being authorized to supply electrical energy; "Authority" means the Energy and Petroleum Regulatory Authority; "Cabinet Secretary means the Cabinet Secretary for the time being responsible for energy; "Carbon Credit" means a tradable unit equivalent to one metric tonne of carbon dioxide that is generated in accordance with international or national standards and market rules; "Code Participants" means the system operator, the Authority, large consumers and persons who carry out or who intend to carry out the generation, transmission, distribution and supply of electrical energy or any other operation for which a license is required pursuant to the Act; "Commissioning." means the conducting of tests necessary to bring the Net-metering System into operation; "Connection Point" means the Point of Common Coupling between the Licensee and Prosumer's systems; "Distribution Licence" means any document or instrument authorizing a Person to operate a distribution system for the purpose of enabling supply of electrical energy to consumers or to other licensees. "Export" means, with regard to meter readings, the number of units of electricity (measured in kWh) that a Prosumer has supplied to the grid within a billing period; "Import" means, with regard to meter readings, the number of units of electricity (measured in kWh) that a Prosumer has been supplied with from the grid within a billing period; "Kenya Standard" shall have the meaning assigned to it under Standards Act, Cap 496 Laws of Kenya; "Distribution Licensee or Licensee" means a licensee authorized under the Energy (Electricity Licensing) Regulations 2012 and subsequent revisions to operate and maintain a distribution system for supplying electrical energy to its consumers in its area of supply; "Net Metering". means a mechanism that allows electricity consumers who generate their own power to supply electricity to the grid in times of over-production and to be compensated for or make use of the credited energy during other times; "Net Metee' means an appropriate energy meter capable of recording both Import and Export of electricity and provide the net electricity; "Net Metering System" means a system that operates in parallel with the electrical distribution facilities of a Licensee and that measures, by means of a meter dedicated for export, the amount of electrical energy that is supplied by the Prosumer; "Net Metering Agreement" means an agreement entered into in accordance with section 162 of the Act by a Licensee and Prosumer in accordance with these Regulations; "Operates in Parallel" means the operationof on-site generation by a Prosumer while the Prosumer is connected to the distribution system of the Licensee; "Operational Constraints" means the limits imposed by the Licensee's network as determined by technical studies performed by, and practical experiences of the Licensee; "Person" means as any natural or juridical Person; "Phase One of the Net metering Programme" means the first three years of the implementation of Net Metering in Kenya from the date of coming into force of these Regulations; "Point of Common Coupling" means the point where the Licensee's electricity distribution system and Prosumer interface occurs; "Prosumer" means a residential, commercial or industrial consumer supplied by a Licensee and generates electricity, on the consumer's side of the meter, using a Renewable Energy source whose capacity does not exceed one megawatt (1 MW); "Renewable Energy" means non-fossil energy generated from natural non-depleting resources including but not limited to solar energy, wind energy, biomass energy, biological waste energy, hydro energy, geothermal energy and ocean and tidal energy; "Renewable Energy Technologies" means all technologies used to generate energy from renewable energy sources; "Retail Supply Licence" means any document or instrument authorizing a Person to supply electrical energy in the manner described in such document or instrument to any premises and such licence shall also entitle the licensee to receive a bulk supply from another licensee; "Self-consumption" means the generation of electrical energy and use of that energy by the Prosumer; "Tribunal" means the Energy and Petroleum Tribunal established under section 25 of the Act. PART II—GENERAL PROVISIONS General Principles 4. (1) The Licensee shall offer the provision of net-metering arrangement to the Prosumers who intend to install grid connected Renewable Energy system in its area of supply on non-discriminatory and first come fast served basis, subject to operational constraints, provided that the Prosumer is eligible to install the grid connected Renewable Energy system of the rated capacity as specified under these Regulations. (2) Prosumers are considered as Consumers and not as Code Participants under the Kenya Electricity Grid Code for the purpose of these Regulations. (3) Where applicable, the technical requirements of these Regulations shall be met at the connection point. Eligible Technologies and Prosumers 5. (1) All Renewable Energy technologies are eligible for net- metering. (2) All Prosumers supplied by a Licensee, are eligible to enter into a Net-metering Agreement subject to these Regulations and other relevant laws. Generation Capacity Limits 6. (1) The onsite installed capacity of a Renewable Energy system for a Prosiimer entering into a Net-Metering Agreement shall— ()) not exceed 1,000 kW for all the consumer categories and; (ii) be capped at the maximum load demand in kW of the 12 months preceding application for net metering for all consumers except domestic consumers; or (iii) be capped at the maximum allowed load demand where the maximum demand is not recorded as part of the electricity bill. This does not apply to domestic consumers; or THE K EN )1/1,. 6AZETTF 13th Jar; try,',. 7023 (2) The maximum aggregate generatinfl capacity of Ned-Irk:tering Systems shall be one hundred megawatis (100 Mw) for Phase. One of the Net-metering Programme. The Authority shall review the maximum aggregate generation capacity limn when the 100 MW nap is attained but not later than 3 years aUer these regulations are: gazetted. (3) In the case of more than one Licensee, the share of net metering aggregate capacity shall be proportionate to the specific load in a Licensee's area of supply against the national load. (4) The aggregate generation capacity of net metered facilities in a particular Licensee's Area of Supply shall be determined by the Licensee in accordance with--- (a) the Licensee's electrical infrastructure equipment ratings upstream of net metered facilities; and (4) limits imposed by the Licensee's network stability requirement as determined by technical studies performed by, and practical experiences of, the licensee. PART HI—APPLICATION FOR NET-METERING ARRANGEMENT Application to enter into a Net-Metering Agreement 7. (1) A person shall not operate a Net-metering System unless he has a Net-metering Agreement with a Licensee. (2) A person wishing to operate a Net-metering System shall make an application to the Licensee in the form set out in the First Schedule. The application shall be accompanied by a feasibility study report where the proposed Renewable Energy system is more than 10 kW in the form set out in the Second Schedule and a non-refundable fee defined by the Authority for the tariff control period. (3) The feasibility study report in sub-regulation (2) shall not be older than one (1) year at the time of application. (4) The Licensee shall apply to the Authority for approval of fees in sub-regulation (2) as part of the tariff application. (5) The Net-metering Agreement entered into under these Regulations shall be valid for an initial period of 10 years and the term shall be renewable upon expiry with the mutual consent of the Prosumer and the Licensee. Determination of Application 8. (1) The Licensee shall examine all applications made pursuant to Regulation 7 in a non-discriminatory basis, taking into account — (a) system power flow studies in the distribution area. (b) the submitted feasibility study report; and (2) The Licensee's shall process all applications and communicate the outcome in form of a written notice, no later than sixty (60) days from the date of receipt of the application; (3) The written notice by the Licensee under paragraph (2) shall specify — (a) in the case where the application is approved the fact of such approval and any conditions attached thereto; or (b) in the case where the application is rejected, the fact of such rejection and the reason for the rejection. (4) Upon being notified by the Licensee on approval of the application, the Applicant shall commence to install the Renewable Energy installation within three (3) months from the date of the notification, failing which, the application shall be deemed withdrawn and cancelled. (5) Any person who is aggrieved by the decision of the Licensee may, within thirty (30) days of notification of decision, appeal to the Authority as provided for under the Energy (Complaints and Disputes Resolution) Regulations, 2012 or any other subsequent or replacement regulations. (6) Once the application is approved, the Licensee and the Prosumer shall enter into the Net-metering Agreement in the format et out m the Third ;i5eltedu le. 'the Nei- metering .Agreement in the Third Schedule indy he modified where need be prior to signing, with the approval of the Authority. (7) A copy of each signed Netnnetering Agreement he Red by Ow Presume'. niche Authority within (30) days. l'A IV "N S'f A LLA TION, OPERATCON ArsID MAINTENANCE OF NET-I-METERING SYSTEMS Inckzilation, Grid interconnection, Maimenance and Operations 9. (1) The installation, interconnection maintenance, and where applicable, operations of Net-metering Systems in a Licensee's Area of Supply shall only be performed by a competent personnel licensed by the Authority in accordance with the Electric Power (Electrical Installation Works) Rules, 2006 or any other subsequent or replacement rules and using such equipment and system configuration so as to meet relevant requirements of the Kenya Electricity Distribution Grid Code and any relevant Kenya Standards. (2) A Net-metering System shall be capable of operating in parallel and safely commencing the delivery of power into the distribution network at a single point of interconnection. (3) Meters for Net-metering Systems shall— (a) be bi-directional capable of two-way communication used solely to measure and register electricity flow in both directions at the same rate; (4) be able to measure and record peak supply in different periods; (e) type approved by the Kenya Bureau of Standards; (1) provide for time-of-use metering; (e) not be of prepaid type; and (I) be owned by the Licensee. (4) Electricity supplied from and to the net-metered installation shall be within the limits set in the Kenya Electricity Distribution Grid Code and any other guidelines issued by the Authority. (5) The eligible Prosumer shall bear all costs related to the meter and setting up the interconnection with the Licensee's network. (6) The Licensee shall he entitled to witness the testing and C.0111117iSSiOning of Prosumer installation. However, if the licensee does not attend and witness such test (after having been given seven (7) days' written notice by die Prosumer thereof), then the Licensee shall be deemed to have attended and witnessed such test. (7) To prevent a Net-metering Prosumer from back-feeding a de- energized line, a Net-metering facility shall have a visibly open, lockable, manual-disconnect switch, which is accessible by the Licensee and clearly labelled. This requirement for a manual- disconnect switch shall be waived if the following three (3) conditions are met-- (a) The generation system must be designed to shut down or disconnect automatically and cannot be manually overridden by the Prosumer upon loss of utility power; (4) The generation system must be warranted by the manufacturer to shut down or disconnect upon loss of utility power; and The generation system must be properly installed and operated, and inspected and/or tested by competent personnel licensed by the Authority in accordance with the Electric Power (Electrical Installation Works) Rules, 2006 or any other subsequent or replacement rules. (8) The Prosumer shall notify the Licensee in writing and procure the Licensee's written consent prior to the execution of any replacement or modifications to the Net-metering System or the Connection Point. (9) Any Net-metering System causing interference or unacceptable parameters to the Licensee's system shall be disconnected by the Licensee after the Licensee has given the Prosumer notice and reasons for the disconnection where the situation so allows, and the disconnection shall prevail until the issues are resolved. (iv) be capped at 10 kW for three phase domestic consumers, or (s) be capped at .4 kW for singie phase domestic consumes. (5') 13th January, 2023 (10) The Licensee shall have the right to disconnect any Net- metering System from the distribution system and/or the supply of electricity to the prosumer's premises without giving prior notice if in the opinion of Licensee the continuation of the delivery of electricity by the Net-metering System to the distribution system or the supply of electricity to the premises will jeopardize the safety, reliability or security of the Licensee's distribution system or presents an imminent physical threat or endanger the safety, life or health of any person or property. (11) A licensee shall make publicly available at its offices and on its website application procedures for 'thing including how to access the application form and guidelines on what is to be included in the Net-metering Agreement. (12) Where the Prosumer is no longer in control or possession of the premises in which a Net-metering System is installed, Prosumer may with the prior written consent of the Licensee, ane upon agreement with the new ownci or of the premises, assign the Net-metering Agreement to the new owner or occupier, who shall undertake to comply with the terms and conditions of the Net-metering Agreement and any requirements for the grant of consent by the Licensee. PART V —COSTS, TARIFFS AND BILLING Costs, Tariffs and Billing 10. (1) A Licensee shall provide to prosumers electricity services at non-discriminatory rates that are identical, with ,espect to rate, structure, retail rate components, and any monthly charges, to rates approved by the Authority for the applicable tariff control period. (2) Prosumers shall be obliged to pay the Licensee's interconnection costs associated with their installation. The Authority shall gazette the applicable interconnection rates for each consumer category for the tariff control period. (3) Prosumers shall be compensated for electrical energy supplied to the Licensee with a credit for each unit exported in a billing period. (4) The billing and compensation procedures shall be: (a) On a monthly basis a Presurner shall be billed any non variable charges applicable under the retail, tariff schedule currently in force, such as but not limited to any fixed demand and power factor penalty charges. (b) For each unit exported during a billing period, the Prosumer shall receive'a credit of 60% of the exported unit. The Licensee shall compute the number of exported units, apply the discount, credit the Prosumer's bill with the appropriate number of units (kWh), and bill the. Prosumer for the remaining energy supplied by the Licensee in accordance with the applicable standard retail tariff schedule rates. (c) If after the application of unit discount, the Prosumer is a net exporter during the billing period, he shall not be billed for any energy supplied by the Licensee and shall carry forward any surplus credits to the next billing period. (d) The Prosumer shall'pay the demand charge and other fixed charges when the net is zero or net export. (e) Any unused credits shall be forfeited at the end of the Licensee's finanthal year. (f) Units generated and consumed on-site shall not attract any compensation or charge. (g) The Prosumer shall be entitled to install a check meter to verify the units exported for billing purposes. (5) Net-metering Prosumers shall not be entitled to any monetary compensation for capacity, reactive power, voltage and frequency support or other benefits their systems may provide. (6) The Licensee shall avail the distribution system at all times. However, he shall not be liable for occurrences of network downtime as a result of faults, and a net-metering Prosumer shall not be compensated for any deemed generation during such time, (7) For billing purposes, licensees shall not estimate the electricity consumed and generated by net-metered consumers during any billing period. (8) Prosumers shall grant the Licensee's authorised personnel access to their property for the purpose of maintaining and/or reading the meter. (9) Where a Prosumer vacates the premises where a Net-Metering System is installed and terminates the Net-metering Agreement, he shall forfeit any remaining credits. However, the credits may be transferred with the Consent of the Licensee to a new owner or occupier who is assigned the Net-metering Agreement by the Prosumer, in accordance with paragraph 9(11). PART VI-COMPLIANCE, MONITORING, AND ENFORCEMENT ACTIONS Monitoring and Control 11. (1) Licensees shall develop and maintain a register on their website, as specified in the Fourth Schedule, of net-metered Prosumers in their Areas of Supply. The register shall be continuously updated and submitted quarterly to the Authority by the 15th day of each fourth month. (2) Licensees shall report annually to the Authority of the progress on the implementation of Net-metering Systems in their Areas of Supply. The report shall include information specified in the Fifth Schedule. Carbon Credits 12. Ownership of any Carbon Credits accruing to the Prosumer shall remain vested with the Prosumer, unless otherwise specified by any other laws of Kenya. Compliance with Other Technical, Legal and Regulatory Requirements 13. The installation, grid interconnection, maintenance, and operation of the Net-metering System shall comply with all other relevant technical, legal and regulatory requirements applicable in Kenya including but not limited to the existing regulations, policies, or guidelines established under the Environmental Management and Coordination Act, 1999 and amendments thereof, or any other laws on environmental conservation and waste management. PART VII — OFFENCES AND PENALTIES Operating without a Net-Metering Agreement 14 (1) A person who— (a) connects a Net-Metering System without a Net-metering Agreement; (b) contravenes any of the conditions of a Net-metering Agreement; or (c) makes or permits to be made any alteration to permanent installations without the prior approval of the Licensee commits an offence and shall, upon conviction be liable to a maximum fine of one million Kenya shillings. PART VIII —COMPLAINS , DISPUTES, AND APPEALS Complaints, Disputes and Appeals 15. (1) Any complaint or dispute under these Regulations shall be referred to the Authority for resolution in accordance with the Energy (Complaints and Disputes Resolution) Regulations, 2012 or any other subsequent or replacement regulations. (2) Any person aggrieved by a decision or order of the Authority may appeal to the Tribunal in accordance with section 24 of the Act. PART IX — TRANSITION Transitional Provisions 16. The transition provisions set out in the Sixth Schedule shall apply. FIRST SCHEDULE (r. 7 (2)) NET-METERING APPLICATION FORM The Chief Executive Officer Distribution Licensee P.O. Box XXXX xyz I/We hereby apply for Net-metering Agreement in accordance with The Energy (Net-Metering) Regulations, 2022 1. Name of Applicant 2. Details of Applicant : (a) Kenya Revenue Authority Personal Identification No• (b) Postal Address: (c) Email Address: (d) Telephone number(s): (e) LR/ Plot No: (fi Building Name: (g) Street/ Road: (h) Town/ County: 3. Peak demand: 4. Generation plant capacity to be installed Description (this should include the technology) (Insert additional lines as appropriate) 5. Give full details of proprietors or partners owning business or directors/ shareholders of the company, as applicable. Name Nationality (Insert additional lines as appropriate) 6. Applications are to be accompanied by certified copies of the following documents; (1) For a juridical person: (a) Feasibility study report including but not limited to demand forecasts and historical load profiles. (b) Certificate of incorporation or registration, memorandum and articles of association where applicable. (c) A company registration form (CR12 for a Kenyan firm) or its equivalent. (d) Details of current directors or owners including a copy of their identification documents. (e) Lease Agreement or title deed for ownership of land where the installation is located. PIN and VAT certificates, valid tax compliance certificate. (2) For a natural person: (a) Feasibility study report including but not limited to demand forecasts and historical load profiles. (b) Details of owners including a copy of their identification documents. (c) Lease Agreement or title deed for ownership of land where the installation is located. (d) PIN and valid tax compliance certificate. (e) VAT certificate where applicable. 7. Have you successfully applied for net metering in the past? Yes ❑ No❑ If yes, (i) Capacity (ii) Location (iii) Approved on 8. Has any previous net-metering application been rejected under these regulations? Yes ❑ No0 (If Yes, give details) 9. Has any previous net-metering agreement been cancelled under these regulations? Yes ❑ No❑ (If Yes, give details) DECLARATION I/VVe hereby, declare that the information provided in this application is true and accurate. I/We commit to abide by the Energy (Net-Metering) Regulations, 2022 and any rules and by-laws for the time being in force there under. Signature of Applicant Date SECOND SCHEDULE (r. 7(2)) GUIDELINES FOR NET METERING FEASIBILITY STUDY REPORT The study shall determine the technical impact of the RE system installation to the Distribution Licensee's distribution system and establish technical and safety requirements that may be necessary for the installation. The study is a pre-requisite for approval of the Net Metering Agreement application for on-site installation more than 10 kW. Hence, the study shall be performed and the report shall be submitted together with the net metering application. The Consumer shall engage with the Distribution Licensee or any party approved by the Authority to conduct net metering feasibility studies for installation above 10 kW. Upon request by the Consumer, distribution system data shall be provided by Distribution Licensee subject to signing off a Non-Disclosure Agreement (NDA) between the party that shall perform the study and Distribution Licensee. The study conducted shall be based on the Consumer's load profile which shall include, but are not limited to — (a) a general description of the electrical supply system and connection of RE system; (b) a system study from the Consumer's side to the Point of Common Coupling; (c) an analysis of the impact to the Distribution Licensee's distribution system voltage, current, fault level, and power factor; or (d) any other analysis required by the Distribution Licensee for the purpose of safety and security of the distribution system and other electricity consumers. THIRD SCHEDULE (r. 8(6)) NET-METERING SYSTEM AGREEMENT This Agreement is made and entered into at (location) on this (date) day of (month) Between; (a) The Prosumer (Name) having premises at (address) and Meter No. as the first Party; and (b) The Licensee and having its Registered Office at (address) as second Party of this Agreement; Whereas, the Prosumer has applied to the Licensee for approval of a Net-Metering Arrangement under the provisions of the Energy (Net- metering) Regulations, 2022 herein after referred to as "Regulations" and subsequent amendments and sought its connectivity to the Licensee's Distribution Network; And whereas, the Licensee has agreed to provide Network connectivity to the Prosumer for injection of electricity generated from its Renewable Energy Generating System herein after referred to as "System" of kilowatt; Both Parties hereby agree as follows: I. Eligibility: The System meets the applicable norms for being integrated into the Distribution Network, and that the Prosumer shall maintain the System accordingly for the duration of this Agreement. (year) the System. (fl The Prosumer shall not make any alteration to the System and shall not remove any existing component (or components) from the System without the prior written consent of the Licensee unless to comply with any mandatory modifications required by law or any regulatory authority. 4. Other Clearances and Approvals: (a) The Prosumer shall obtain any statutory approvals and clearances that may be required, such as from the Authority and all other relevant statutory agencies, before connecting the System to the distribution Network. (b) If the Prosumer is occupying the premises where the System is situated under the terms of a lease, sub-lease or a licence, then the Prosumer shall obtain the prior written consent of the registered proprietor of the premises or any other person as required by the terms of the lease, sub-lease or licence for the installation and commissioning of the System. 5. Period of Agreement, and Termination: This Agreement shall be for a period of 10 years, but may be terminated prematurely: (a) By mutual consent; or (b) By the Prosumer by giving 30 days' notice to the Licensee; (c) By the Licensee, by giving 30 days' notice, if the Prosumer breaches any terms of this Agreement or the provisions of the Regulations and does not remedy such breach within 30 days, or such other reasonable period as may be provided, of receiving notice of such breach, or for any other valid reason communicated by the Licensee in writing. (d) Upon the occurrence of an event of default. For purposes of this agreement, an event of default shall occur upon the following — (i) the Prosumer is liquidated or wound up or passes a resolution for voluntary winding up (otherwise than for a bona fide reconstruction or amalgamation) or if similar or analogous proceedings are instituted against or taken by that party; or (ii) the Prosumer shall have a receiver or an administrative receiver appointed in respect of all or any part of their assets or if similar or analogous proceedings are instituted against the assets of that party; or (iii) the Prosumer enters into an arrangement for the benefit of their creditors; or (iv) the Prosumer dies; or (v) any warranty, representation or covenant made by the Prosumer in this agreement is false or inaccurate in any material respect; or (vi) the electricity supply contract by the Licensee is terminated; or (vii) the Prosumer vacates the premises and is no longer in control or possession of the premises and does not assign the agreement to the new owner or occupant of the premises. 6. Access and Disconnection (a) The Prosumer shall provide access to the Licensee to the metering equipment and disconnecting devices of the System, both automatic and manual. (b) If, in an emergent or outage situation, the Licensee cannot access the disconnecting devices of the System, both automatic and manual, it may disconnect power supply to the premises. (c) Upon termination of this Agreement under Clause 5, the Prosumer shall disconnect the System forthwith from the Network of the Licensee. 13th January, 2023 2. Technical and Inter-Connection Requirements: (a) The metering arrangement and the inter-connection of the System with the Network of the Licensee shall be as per the provisions of the Regulations and the technical standards and norms specified therein. (b) The Prosumer agrees, that he shall install, prior to connection of the System to the Network of the Licensee, an isolation device -both automatic and in built within the inverter (where applicable) and external manual relays; and the Licensee shall have access to it if required for the repair and maintenance of the Distribution Network. (c) The Licensee shall specify the interface/inter-connection point and metering point. (d) The Prosumer shall furnish all relevant data, such as voltage, frequency, circuit breaker, isolator position in his System, as and when required by the Licensee. (e) The Prosumer shall ensure that the System complies the provisions of the Energy Act and the Energy (Net- Metering) Regulations, 2022 or any statutory modification or re-enactment thereof or any other statutory provision relating to the production, supply and use of electricity. (f) Without prejudice to any other provision in this agreement, the Licensee shall not be obligated to accept the exported energy if any of the following circumstances occurs — (i) for such periods and under such circumstances as the Licensee thinks fit having regard to public safety and private safety; (ii) any emergency condition occurs; (iii) the System delivers the exported energy which does not conform to the electrical characteristics consistent with prudent utility practices; (iv) maintenance of the System or the meters; (v) the disconnection of the System from Licensees Distribution Network due to the failure of the Prosumer to pay any amount payable under this agreement; or (vi) the Prosumer is in breach of the provisions of the Energy Act or the Energy (Net-Metering) Regulations,2022 or any statutory modification or re- enactment thereof or any other statutory provision relating to the production, supply and use of electricity. 3. Safety: (a) The equipment connected to the Licensee's Distribution System shall be compliant with relevant Kenyan Standards or applicable international standards as the case may be, and the installation of electrical equipment shall comply with the requirements specified by the Authority regarding safety and electricity supply. (b) The design, installation, maintenance and operation of the System shall be undertaken in a manner conducive to the safety of the System as well as the Licensee's Network. (c) If, at any time, the Licensee determines that the System is causing or may cause damage to and/or results in the Licensee's other consumers or its assets, the Prosumer shall disconnect the System from the distribution Network upon direction from the Licensee, and shall undertake corrective measures at his own expense prior to re-connection. (d) The Licensee shall not be responsible for any accident resulting in injury to human beings or animals or damage to property that may occur due to back-feeding from the System when the grid supply is off. The Licensee may disconnect the installation at any time in the event of such exigencies to prevent such accidents. (e) The Prosumer shall maintain at their own expense the System in good and substantial repair in order to keep it in good an operating condition (subject to fair wear and tear only) including replacement of worn, damaged and lost (b) Rejected Applications The Prosumer warrants and represents that— (a) the System shall substantially conform to its specification (as made available by the Licensee), be of satisfactory quality and fit for purpose and the System's generation capacity shall not exceed 1 MW; and (b) they are in possession and control of the premises where the System is situated. 8. Liabilities (a) The Parties shall indemnify each other for damages or adverse effects of either Party's negligence or misconduct during the installation of the System, connectivity with the distribution Network and operation of the System. (b) The Parties shall not be liable to each other for any loss of profits or revenues, business interruption losses, loss of contract or goodwill, or for indirect, consequential, incidental or special damages including, but not limited to, punitive or exemplary damages, whether any of these liabilities, losses or damages arise in contract, or otherwise. 9. Commercial Settlement (a) The commercial settlements under this Agreement shall be in accordance with the relevant provisions in the Regulations. (b) The Licensee shall not be liable to compensate the Prosumer if his System is unable to inject surplus power generated into the Licensee's Network on account of failure of power supply in the grid/Network. (c) The existing metering System, if not in accordance with the Regulations, shall be replaced as per the requirements in the Regulations. (d) The uni-directional and bi-directional or pair of meters shall be fixed in separate meter boxes in the same proximity. (e) The Licensee shall issue monthly electricity bill for the net metered energy on the scheduled date of meter reading. If the exported energy exceeds the imported energy, the Licensee shall show the net energy exported as credited Units of electricity as specified in the Regulations. If the exported energy is less than the imported energy, the Prosumer shall pay the Licensee for the net energy imported at the prevailing tariff approved by Authority for the prosumer category to which he belongs. 10. Connection Costs The Prosumer shall bear all costs related to the setting up of the System and as guided by the Regulations. 11. Dispute Resolution (a) Any dispute arising under this Agreement shall be resolved promptly, in good faith and in an equitable manner by both Parties. (b) The aggrieved party shall have recourse to the Authority as per the provisions of the Regulations. 12. Service of Notices (a) All notices to be given in terms of this agreement will be given in writing and will be delivered by hand or registered post to their postal address in first page of this agreement. (b) if delivered by hand during business hours, be presumed to have been received on the date of delivery. Any notice delivered after business hours or on a day which is not a business day will be presumed to have been received on the following business day. (c) If sent by registered post, be presumed to have been received five (5) days after posting. (d) Notwithstanding the above, any notice given in writing, and actually received by the party to whom the notice is addressed, will be deemed to have been properly given and 13th January, 2023 received, notwithstanding that such notice has not been given in accordance with this clause. 13. General Provisions (a) Waiver: No failure or delay to exercise any power, right or remedy by either party shall operate as a waiver of that right, power or remedy and no single or partial exercise by that party of any right, power or remedy shall preclude its further exercise or the exercise of any other right, power or remedy. (b) Variations to be in Writing: No addition to or variation, deletion, or agreed cancellation of all or any clauses or provisions of the agreement will be of any force or effect unless in writing and signed by the parties. (c) Severability of provisions: Each of the provisions of the agreement is severable and distinct from the others and, if at any time one or more of these provisions is or becomes invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. (d) Taxes: The Prosumer shall be responsible for all present and future taxes, duties, levies and other similar charges including any related interest and penalties, however designated, arising out or imposed by law in connection with the operation of the System. Sign. Sign for and on behalf of Prosumer for and on behalf of Licensee Witness 1: Witness 1: Witness 2: Witness 2: FOURTH SCHEDULE (r. 11(1)) REGISTER OF NET METERING AGREEMENT APPLICATIONS (a) Approved Applications FIFTH SCHEDULE (r. 11(2)) ANNUAL REPORT TO THE AUTHORITY The annual report to the Authority shall include the following— (a) net-metered Prosumer names; (b) the total number of net metered Prosumer systems, by resource type; (c) the individual and total rated generating capacities of Net- metering Systems, by resource type; (d) the individual and total annual energy (kWh) exported by Prosumers; (e) the regional distribution of the Prosumers; (f) records of Prosumers historical energy consumption for a period of one (1) year prior to the date of installation of the Net-Metering System; and 13th January, 2023 THE KENYA GAZETTE THE DRAFT ENERGY (SOLAR WATER HEATING) (g) major incidences relating to the introduction of the Net- REGULATIONS, 2022 metering System on the grid within the area of supply. PART I—PRELIMINARIES SIXTH SCHEDULE (r.16) TRANSITIONAL CLAUSES (a) Owners of existing Renewable Energy systems of a capacity not exceeding 1 MW and who have been generating for self-consumption prior to the enactment of these Regulations, are eligible to enter into a Net-metering Agreement, provided they meet all the requirements set out in the Regulations. (b) The Penalty provided in section 210 of the Energy Act shall apply for provision of false information. (c) The application for transition shall be processed within thirty (30) days from the date of application. MFt/4281431