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Energy regulator extends transition period for new LPG rules

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Retailers of liquefied petroleum gas can now breathe a sigh of relief after the regulator extended the transition period for the dealers to acquire retail licenses by three months. FILE PHOTO | NMG

Retailers of liquefied petroleum gas can now breathe a sigh of relief after the regulator extended the transition period for the dealers to acquire retail licenses by three months.

Energy and Petroleum Regulatory Authority (EPRA) Director General Pavel Oimeke extended the period to March 31, 2020 citing hurdles experienced by the retailers in getting the critical documents required for the application of the licence.

Mr Oimeke said that only 2, 000 of the LPG retailers have been issued with the required license out of the total approximate number of 10, 000 across the country, translating to only 20 percent compliance rate.

“Accordingly, and in consideration of the hurdles experienced by the retailers in obtaining the critical documents required for application for the aforementioned licenses such as the fire compliance certificate and the single business permit, EPRA has granted the request to extend the time period for compliance up to March 31, 2020-01-19,” said Mr Oimeke in a letter dated January 16, 2020.

The DG, however, warned the retailers to only stock and offer for sale cylinder brands for which they have received prior written approval to distribute from the respective brand owners as stipulated by the Petroleum Regulations of 2019.

Energy Dealers Association (EDA) General Secretary Kepher Odongo welcomed the move by EPRA to extend the transition period saying it will restore sanity and avoid the ugly scenes which could have been witnessed in the sector due to police crackdown on the unlicensed retailers.

“There is new development in the LPG circle after EPRA extended the transition period for retailers for another three months following our appeal to the agency,” said Mr Odongo.

He appealed to the LPG traders to get the necessary documents from various government agencies to fast track the process of licensing before the new deadline.

Earlier this month, the dealers spoiled for a fight with the national regulator over the implementation of regulations relating to LPG cylinder pool exchange after EPRA rebuffed a request by EDA to have the implementation period of the laws set to come into effect this month extended by another six months.

But Mr Oimeke maintained his ground saying the agency will not grant any more extension to the transition period directing members of the Association to comply with the provisions of the legal notice as gazetted.

This is after the Association, which controls about 55 percent of the retail market with more than 30 LPG brands across the country, called for the law to be delayed to June, saying most retailers are yet to obtain the various county licenses.

The implementation of the Legal Notice No 100 of 2019, which was to take effect on June 25 last year before a three months extension was granted by EPRA, has proved to be a bone of contention between the two entities.

The new law – Petroleum Act 2019 – requires all LPG retailers, wholesalers and transporters to hold licenses for each business location following the abolishing of the compulsory LPG cylinder exchange pool.

It also says the licenses will be specific to the authorised cylinder brands, and retailers are required to obtain prior written consent from brand owners.