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Energy Regulatory Commission Case Study

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Energy Regulatory Commission Case Study
The Energy Regulatory Commission (ERC) has cracked a whip on all filing stations selling adulterated fuel to unaware customers. It has conducted an inspection and found out that 96 per cent petroleum outlets are free from contaminated fuel or fuel meant for export. Petroleum adulteration is the mixing of diesel with kerosene or mixing super petrol with kerosene in order to exploit the lower taxes on kerosene. ERC said it is empowered by the Energy Retail Facility Construction and Licensing (RFCL) Regulations of 2013, Legal Notice No. 7 of 28 January 2014, to publish a list of retail dispensing stations that may have committed offences under the Energy Act, 2006. The Commission said the offences include offering for sale of adulterated petroleum …show more content…
A total of 8,945 tests were carried out in 1,493 petroleum outlets with the purpose of singling out non-compliant traders," ERC said in a statement on Monday. 96.2 per cent of the 1,493 petroleum outlets tested were found to be complaint with only 56 stations recording non-compliance, and were immediately closed according to the Energy Regulatory body. "Their operators were required to upgrade the adulterated petroleum where applicable and also to pay penalties and taxes to the Kenya Revenue Authority (KRA) before they were allowed to resume business. At 96%, this high level of compliance demonstrates that stringent measures implemented by the Commission and other state agencies to protect consumers from deceitful practices are paying off," added the Commission. ERC warned that petroleum adulteration poses serious health, environmental, operational and economic hazards. It said contaminated petrol and diesel causes engine malfunction resulting in exhaust fumes that are of great health …show more content…
In September 2015, ERC launched a retailer self-test kit which has benefited petroleum retailers who now test fuel products upon delivery before accepting it into their storage tanks. The Commission added: "Public vigilance is a key element in cracking down on fuel

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