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Kenya Power Monopoly to cease
Rank: Chief Joined: 8/24/2009 Posts: 5,909 Location: Nairobi
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murchr wrote:guru267 wrote:80% of Kenyans are still unconnected to power.... KPL can stay with its current connections and there will still be plenty of room for competition! Especially since KETRACO will own all new transmissions.. www.ketraco.co.ke/about/ Guru answer these simple questions: 1. Given a choice as an investor to distribute power between Buru buru estate and my village which one would you prefer? 2. Assuming you choose buruburu over my village (ofcourse because of the returns) do you think KPL would agree to cede this market? 3. If they do agree to, at what cost and who eventually pays for it? 4. Will the customers agree to pay more because you are a new investor? 5. Assuming you choose my village over buru buru, how much will you charge my grandma and how long will it take for you to have a ROI? 6.How much power will my grandma use esp given that she goes to bed as soon as the sun sets  . Anyway..my understanding is that KETRACO transports or transmits large amounts of power from Kengen to KPLC substations. Transmission of power from the substations to your house is done by KPLC. Please answer my question too...why has the Kamwana Gaarment increased the cost of connecting electricity in my village??? What is the story behind this move?
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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nostoppingthis wrote:murchr wrote:guru267 wrote:80% of Kenyans are still unconnected to power.... KPL can stay with its current connections and there will still be plenty of room for competition! Especially since KETRACO will own all new transmissions.. www.ketraco.co.ke/about/ Guru answer these simple questions: 1. Given a choice as an investor to distribute power between Buru buru estate and my village which one would you prefer? 2. Assuming you choose buruburu over my village (ofcourse because of the returns) do you think KPL would agree to cede this market? 3. If they do agree to, at what cost and who eventually pays for it? 4. Will the customers agree to pay more because you are a new investor? 5. Assuming you choose my village over buru buru, how much will you charge my grandma and how long will it take for you to have a ROI? 6.How much power will my grandma use esp given that she goes to bed as soon as the sun sets . Anyway..my understanding is that KETRACO transports or transmits large amounts of power from Kengen to KPLC substations. Transmission of power from the substations to your house is done by KPLC. Please answer my question too... why has the Kamwana Gaarment increased the cost of connecting electricity in my village??? What is the story behind this move? If I may, rumor has it that rural electrification was largely bankrolled by the French who have now pulled out. Don't know how true that is though. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Member Joined: 5/19/2012 Posts: 552
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Rankaz13 wrote:nostoppingthis wrote:murchr wrote:guru267 wrote:80% of Kenyans are still unconnected to power.... KPL can stay with its current connections and there will still be plenty of room for competition! Especially since KETRACO will own all new transmissions.. www.ketraco.co.ke/about/ Guru answer these simple questions: 1. Given a choice as an investor to distribute power between Buru buru estate and my village which one would you prefer? 2. Assuming you choose buruburu over my village (ofcourse because of the returns) do you think KPL would agree to cede this market? 3. If they do agree to, at what cost and who eventually pays for it? 4. Will the customers agree to pay more because you are a new investor? 5. Assuming you choose my village over buru buru, how much will you charge my grandma and how long will it take for you to have a ROI? 6.How much power will my grandma use esp given that she goes to bed as soon as the sun sets . Anyway..my understanding is that KETRACO transports or transmits large amounts of power from Kengen to KPLC substations. Transmission of power from the substations to your house is done by KPLC. Please answer my question too... why has the Kamwana Gaarment increased the cost of connecting electricity in my village??? What is the story behind this move? If I may, rumor has it that rural electrification was largely bankrolled by the French who have now pulled out. Don't know how true that is though. True. The earlier rate was subsidized. No subsidy any more, hence connection now at market rate Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.... Leo Buscaglia
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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These MPs are bringing pedestrian arguments in some very complex matters. It costs anything from 100-200M to generate 1MW of power. This cost does not include cost of transmission and distribution. This is money that is borrowed, and must be repaid in a given duration. The financiers look at many factors to determine viability of the loan. Among these factors is the electricity charge at the end of the chain since this is the source of the loan repayment money. At what cost will the supposed independent distributor buy power from Kengen or any other producer? And will they make profit? Please also note that all power currently being produced by Kengen, including additional power expected in the next 5 years from ongoing projects is locked –in with Kenya Power in legal power purchase agreements-thus not available to any other distributer.
The only and only chance for independent distributer is where there is small scale local power generation (mini-hydro, biogass, photo-voltaic, etc) and subsequent local distribution purely for localised consumption. Kenya Power is here to stay.
Note – am not a shareholder in Kenya power.
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Rank: Elder Joined: 1/27/2011 Posts: 1,777
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limanika wrote:This is one I agree with murchr. Kenya power is here for the long haul – until someone ‘invents’ some sort of wireless technology to distribute electric power – the way fixed telecoms were pushed out of market. There's a possibility for that.....who knows, maybe Kenya Power will become history in the near future....and if it does, i'll be a very happy man. http://www.slideshare.ne...nsmission-of-electricity
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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josiah33 wrote:[quote=limanika]This is one I agree with murchr. Kenya power is here for the long haul – until someone ‘invents’ some sort of wireless technology to distribute electric power – the way fixed telecoms were pushed out of market. There's a possibility for that.....who knows, maybe Kenya Power will become history in the near future....and if it does, i'll be a very happy man. http://www.slideshare.ne...smission-of-electricity[/quote] The wireless power transmission was first conceived by Tesla in the late 1800s. 100 years later, no much progress. We need an Einstein to come into the scene, otherwise wait for next 500 years
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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More on Tesla and wireless power transmission for those interested... http://www.damninteresti...m/teslas-tower-of-power/
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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KP receives loan for new connections. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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murchr wrote:guru267 wrote:80% of Kenyans are still unconnected to power.... KPL can stay with its current connections and there will still be plenty of room for competition! Especially since KETRACO will own all new transmissions.. www.ketraco.co.ke/about/ Guru answer these simple questions: 1. Given a choice as an investor to distribute power between Buru buru estate and my village which one would you prefer? 2. Assuming you choose buruburu over my village (ofcourse because of the returns) do you think KPL would agree to cede this market? 3. If they do agree to, at what cost and who eventually pays for it? 4. Will the customers agree to pay more because you are a new investor? 5. Assuming you choose my village over buru buru, how much will you charge my grandma and how long will it take for you to have a ROI? 6.How much power will my grandma use esp given that she goes to bed as soon as the sun sets . Anyway..my understanding is that KETRACO transports or transmits large amounts of power from Kengen to KPLC substations. Transmission of power from the substations to your house is done by KPLC. Well...guru never got to answer these questions but Quote:THE government has ruled out opening up of power distribution to competition in the foreseeable future, citing higher costs, even as the national grid capacity is projected to more than tripple in the next three years.
That will leave Kenya Power to continue enjoying a near monopoly in supplying and retailing of electricity from the 1,800MW grid.
- See more at: http://www.the-star.co.k...iod#sthash.CKj8VnPH.dpuf"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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Kenya Power cuts cost of connecting homes to gridQuote:Lower cost of connection is to be realised through use of single, thinner and lighter cables as opposed to the current system that uses two or four cables to connect domestic consumers.
Kenya Power is also planning to cut costs by using smaller poles that will be spaced 100 metres apart instead of the current 50 metres.
“We are going to save on every aspect and this should bring down connection rates within the 600 meter radius to an average of Sh30,000 from the current Sh105,000,” Ben Chumo, the managing director of Kenya Power said. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Business Daily wrote:Proposed law seeks to end Kenya Power market monopoly
The Bill, currently with the Commission for the Implementation of the Constitution (CIC) for review ahead of its tabling in Parliament, proposes the licensing of other electricity distributors and retailers, promising consumers choice and better quality of service.
Licensed distributors will build supply power lines from sub-stations to homes but another entity (a retailer) will sell, meter and bill customers, according to the proposed law.
The retailers will buy power from different sources and pay the distribution company a fee for using their network to connect customers.
The Energy Bill, 2015 says that customers will only turn to a power distributor for supply if there is no registered retailer in their locality or if they require medium to high voltage power. “A person requiring supply of electrical energy shall apply to the duly authorised retailer, but where there is no such retailer, to the distribution licensee,” the Bill says.
The changes are meant to create room for new players in the electricity sub-sector where Kenya Power continues to operate as a monopoly. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 8/10/2014 Posts: 989 Location: Kenya
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murchr wrote:Business Daily wrote:Proposed law seeks to end Kenya Power market monopoly
The Bill, currently with the Commission for the Implementation of the Constitution (CIC) for review ahead of its tabling in Parliament, proposes the licensing of other electricity distributors and retailers, promising consumers choice and better quality of service.
Licensed distributors will build supply power lines from sub-stations to homes but another entity (a retailer) will sell, meter and bill customers, according to the proposed law.
The retailers will buy power from different sources and pay the distribution company a fee for using their network to connect customers.
The Energy Bill, 2015 says that customers will only turn to a power distributor for supply if there is no registered retailer in their locality or if they require medium to high voltage power. “A person requiring supply of electrical energy shall apply to the duly authorised retailer, but where there is no such retailer, to the distribution licensee,” the Bill says.
The changes are meant to create room for new players in the electricity sub-sector where Kenya Power continues to operate as a monopoly. Kenya Power already has all PPA from all power producers for 20 years. They also have all the big power consumers, in the capital hungry power business making loses is so easy if you cant get the big power consumers. Paying to use sbs infrastructure will just increase cost of power due to more overheads. Just look at how much debt Kenya Power is taking just to do small improvements and expand.
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Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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watesh wrote:murchr wrote:Business Daily wrote:Proposed law seeks to end Kenya Power market monopoly
The Bill, currently with the Commission for the Implementation of the Constitution (CIC) for review ahead of its tabling in Parliament, proposes the licensing of other electricity distributors and retailers, promising consumers choice and better quality of service.
Licensed distributors will build supply power lines from sub-stations to homes but another entity (a retailer) will sell, meter and bill customers, according to the proposed law.
The retailers will buy power from different sources and pay the distribution company a fee for using their network to connect customers.
The Energy Bill, 2015 says that customers will only turn to a power distributor for supply if there is no registered retailer in their locality or if they require medium to high voltage power. “A person requiring supply of electrical energy shall apply to the duly authorised retailer, but where there is no such retailer, to the distribution licensee,” the Bill says.
The changes are meant to create room for new players in the electricity sub-sector where Kenya Power continues to operate as a monopoly. Kenya Power already has all PPA from all power producers for 20 years. They also have all the big power consumers, in the capital hungry power business making loses is so easy if you cant get the big power consumers. Paying to use sbs infrastructure will just increase cost of power due to more overheads. Just look at how much debt Kenya Power is taking just to do small improvements and expand. Kenya Power Monopoly to cease
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Rank: Member Joined: 2/20/2007 Posts: 767
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iris wrote:watesh wrote:murchr wrote:Business Daily wrote:Proposed law seeks to end Kenya Power market monopoly
The Bill, currently with the Commission for the Implementation of the Constitution (CIC) for review ahead of its tabling in Parliament, proposes the licensing of other electricity distributors and retailers, promising consumers choice and better quality of service.
Licensed distributors will build supply power lines from sub-stations to homes but another entity (a retailer) will sell, meter and bill customers, according to the proposed law.
The retailers will buy power from different sources and pay the distribution company a fee for using their network to connect customers.
The Energy Bill, 2015 says that customers will only turn to a power distributor for supply if there is no registered retailer in their locality or if they require medium to high voltage power. “A person requiring supply of electrical energy shall apply to the duly authorised retailer, but where there is no such retailer, to the distribution licensee,” the Bill says.
The changes are meant to create room for new players in the electricity sub-sector where Kenya Power continues to operate as a monopoly. Kenya Power already has all PPA from all power producers for 20 years. They also have all the big power consumers, in the capital hungry power business making loses is so easy if you cant get the big power consumers. Paying to use sbs infrastructure will just increase cost of power due to more overheads. Just look at how much debt Kenya Power is taking just to do small improvements and expand. Kenya Power Monopoly to cease Kenya Power will remain monopoly for ever. In fact, it will split into KP distribution and KP retail. It will then outsource retail function in areas like Kibera, Mathare where collections are a headache and electricity theft is rampant. The retailer is forced to work very hard to collect cash and pay the distributor and still make a profit. They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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