Swenani wrote:MaichBlack wrote:AlphDoti wrote:Rawsinvestor wrote:If I can buy for the whole village what is the problem? That makes it easier for KPLC as they are not going to have lots of bills to send.
There is not justification for what Safaricom is doing unless there is something else that we do not know and we should never know.
But you can't buy for the whole village
This is similar to those guys who subscribe DSTV and illegally distribute to his neighbours for money!
This is similar to those Kibera fellows illegally distributing electricity...
Many examples... This is not acceptable
Wrong comparisons!!!
Dstv re distributors pay for a single subscription and distribute it to multiple individuals losing the company revenue. Instead of 30 people paying 210,000/= 'they' pay 7,000/=. That's a HUGE problem for the company!! @Rawsinvestor will actually pay KPLC more if he allows the villagers to use power.
Kibera fellows (and other informal settlements) are pure thugs!!! The don't pay for any of the electricity. They simply STEAL it by tapping into KPLC lines.
KPLC will lose,If Rawsinvestor distributes to 100 villagers, KPLC will lose 14000 in fixed charges(I'm not sure whether the fixed charge is still 140 per bill)
On the contrary1
They will actually make more money!!!
If the villagers have their own meters/connections, they will each consume less than 50 units per month. Now down to the maths.
The first 50 units are charged 2.50/= per kwh.
51 - 500 units 13.68/= per kwh
Above 500 units 21.57/= per kwh
For the sake of this calculation, lets assume @Rawsinvestor and each of the 100 villagers consumes 50 units per month (A fair approximation in the village)
Scenario 1: @Rawsinvestor distributing the powerTotal usage: 101 * 50 units = 5,050 units.
Bill:Fixed Charge = 140/=
First 50 units = 2.50/= * 50 = 125/=
51 - 500 units = 13.68 * 450 = 6,156/=
501 - 5050 units = 21.57 * 4550 = 98,143.5/=
Bill (consumption + Fixed Charge) = 140 + 125 + 6,156 + 98,143.5 =
104,564.5/=Scenario 2: Every villager with own connectionBill per villager:Fixed Charge: 140/=
Consumption: 2.50/= * 50 = 125/=
Total = 140 + 125 = 265/=
Total for the 101 villagers = 265/= * 101 =
26,765/= Kenya Power will actually make 4 times more for the same power supplied if @Rawsinvestor distributes the power to his fellow villagers!Note:1) I have ignored taxes and fuel charge because they are
ratios and would therefore not affect the comparison.
2) You don't have to work with 50 units. Choose any realistic value and Kenya Power still makes more from "distributed" power. If the villagers consume more than 50 units per home, they make more than 4 times because all the extra units will be pushed to the 21.57/= band. If they consume less than 50 units, Kenya Power still makes more from "distributed" but the ratio reduces the lower you go.
Even if the villagers did their best and consumed 10 units each per month, Kenya Power still makes more! Try repeating the calculations with 10 units per home (which is ridiculously low) and see!!!
Habari ndiyo hiyo.
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.